2023 NatWest Group performance summary
Chief Executive, 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.
As we look ahead, I am ambitious and confident for the future of NatWest Group. We should not underestimate the strength of our foundations or the opportunity to build deeper relationships with our 19 million customers. Our number one priority is to serve our customers well and provide them with the products, services, and expertise they need.
This year we are focussed on the things we can control; delivering profitable growth, becoming more efficient, more productive, and simpler to deal with, whilst managing our cost and capital efficiently. Together, these actions will drive long-term, sustainable value for our customers, shareholders, and the wider UK economy."
Strong financial performance and delivery against our targets
- Full year attributable profit of £4.4 billion and a return on tangible equity (RoTE) of 17.8%, above our guided range.
- Total income excluding notable items(1) of £14.3 billion increased by £1.3 billion, or 9.8%, compared with 2022 principally reflecting the impact of favourable yield curve movements, higher income in our markets business and lending growth partially offset by reduced deposit balances and mix changes and lending margin pressure.
- Bank net interest margin (NIM) of 3.04% was 19 basis points higher than 2022 with the increase reflecting favourable yield curve movements partially offset by lending margin pressure, reduced deposits balances and mix changes.
- Other operating expenses of £7.6 billion increased by £339 million, or 4.6%, compared with 2022. The cost:income ratio (excl. litigation and conduct) was 51.8% for 2023 compared with 55.5% for 2022.
- A net impairment charge of £578 million for 2023, or 15 basis points of gross customer loans, principally reflects continued low and stable levels of stage 3 defaults across the portfolio and good book charges related to unsecured lending.
And later;
Dividends
The company has announced that the directors have recommended a final dividend of £1.0 billion, or 11.5p per ordinary share (2022 - £1.0 billion, or 10.0p per ordinary share) subject to shareholder approval at the Annual General Meeting on 23 April 2024. If approved, payment will be made on 29 April 2024 to shareholders on the register at the close of business on 15 March 2024. The ex-dividend date will be 14 March 2024.
https://www.investegate.co.uk/announcem ... lc/8041346Ian (No holding).