NatWest Group Plc (LON:NWG) has published its Annual Report and Accounts 2024.
Chief Executive, Paul Thwaite, commented:
“NatWest Group delivered a strong performance in 2024 with income excluding notable items of £14.6 billion and a return on tangible equity of 17.5%, exceeding our upgraded guidance. Throughout the year, we made good progress against our strategic priorities by growing all three of our customer businesses, improving productivity and actively managing our capital. This performance is grounded in the support and services we provide to over 19 million customers, whether buying or refinancing their homes, helping them to invest or growing their businesses. Alongside this, we were also pleased to see an accelerated reduction in the government’s shareholding.
I am proud of all that our colleagues achieved in 2024, but our focus is firmly on the future. We have positive momentum behind us and a clear ambition to succeed with customers as we continue to build a simpler, more integrated and technology-driven bank that is capable of even greater impact. As we enter a new, forward-looking chapter for NatWest Group, I am optimistic about the opportunities ahead of us to grow our business as a vital and trusted partner to our customers and the UK itself and, in doing so, create further value for our shareholders.”
Full year 2024 performance
– Attributable profit £4.5 billion, with earnings per share of 53.5 pence, up 5.6 pence, or 12%, compared to 2023. Return on tangible equity (RoTE) of 17.5%.
– TNAV per share increased 37 pence to 329 pence primarily reflecting the attributable profit partially offset by the impact of distributions.
– A final dividend of 15.5 pence per share is proposed, bringing the total for the year to 21.5 pence, up 26% compared to 2023. Total distributions deducted from capital in the year are £4.0 billion.
– Common Equity Tier 1 (CET1) ratio of 13.6% was 20 basis points higher than 31 December 2023. Capital generation pre distributions was 243 basis points for the year. RWAs increased by £0.2 billion in the year to £183.2 billion.
– Total income excluding notable items(1) of £14.6 billion increased by £0.3 billion, or 2.2%, compared with 2023 principally reflecting deposit margin expansion and lending growth. Net interest margin (NIM) of 2.13% was 1 basis point higher than 2023.
– Other operating expenses were £213 million (2.8%) higher than 2023, or excluding costs in relation to a retail share offering of £24 million and additional bank levies of £102 million, were 1.1% higher.
– A net impairment charge of £359 million for 2024, or 9 basis points of gross customer loans, with levels of default stable.
– Net loans to customers excluding central items increased by £12.9 billion, or 3.6%, to £368.5 billion reflecting a £3.2 billion increase in Retail Banking, of which £2.2 billion relates to the Metro Bank mortgage portfolio, and a £10.0 billion increase in Commercial & Institutional.
– Customer deposits excluding central items increased by £12.2 billion, or 2.9%, during 2024 to £431.3 billion as savings growth was partially offset by lower current account balances within Retail Banking and Private Banking.
– The liquidity coverage ratio (LCR) of 150%, representing £53.4 billion headroom above 100% minimum requirement, increased by 6 percentage points compared with 2023.
Q4 2024 performance
– Attributable profit of £1,248 million and a RoTE of 19.0%.
– Total income excluding notable items of £3,872 million was £100 million, or 2.7%, higher than Q3 2024. NIM increased 1 basis point to 2.19%.
– Other operating expenses increased by £330 million compared with Q3 2024 principally reflecting the annual Bank Levy and strategic costs including property exits.
– Net loans to customers excluding central items increased by £4.8 billion in the quarter reflecting growth within Corporate & Institutions and higher Retail Banking mortgage balances.
– Customer deposits excluding central items increased £3.9 billion in Q4 2024.
– CET1 ratio reduced by 30 basis points. RWAs increased by £1.7 billion primarily reflecting lending growth.
