The Natwest Group PLC (LON: NWG) share price rose 4.89% after releasing its final results for the year ended 31 December 2023. The company reported a remarkable net profit of £4.4 billion for the year, with a return on tangible equity (RoTE) of 17.8%, surpassing the forecasted range.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The company's total revenue, excluding significant one-time items, reached £14.3 billion, marking a £1.3 billion or 9.8% increase from the previous year. This growth is mainly due to favourable movements in the yield curve, enhanced market division performance, and lending growth. However, the growth was somewhat mitigated by decreased deposit balances, product mix changes, and pressures on lending margins.
The bank's net interest margin (NIM) stood at 3.04%, an increase of 19 basis points from the previous year, reflecting positive yield curve movements but also facing challenges from pressures on lending margins, a decline in deposit balances, and changes in the mix of products.
Operating expenses, excluding litigation and conduct, amounted to £7.6 billion, a rise of £339 million or 4.6% compared to the previous year. The cost-to-income ratio improved to 51.8% in 2023 from 55.5% in 2022.
The net impairment charge was £578 million for the year, or 15 basis points of total customer loans, broadly indicating stable and low Stage 3 defaults across the loan portfolio and charges associated with unsecured lending.
Net customer lending, excluding central items, increased by £8.9 billion or 2.6%, reaching £355.6 billion in 2023. Retail Banking and Commercial & Institutional sectors grew significantly due to increased term loan facilities and private financing.
Natwest Group CEO Paul Thwaite commented: “We have delivered a strong performance in an exceptional macro environment. Our operating profit was up 20% on the year before, with a return on tangible equity of 17.8% and £3.6 billion of distributions to shareholders. The strength of our balance sheet allows us to support our customers, and our performance is grounded in the services we have provided to help them reach their financial goals and manage their money better.”
Natwest Group (NWG) share price.
The Natwest Group (NWG) share price rose 4.89% to trade at 218.65p from its opening price of 208.45p.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.