NatWest quarterly profits hit £1.2bn as it benefits from higher rates

Mortgage growth and rising interest rates helped push NatWest’s first quarter earnings ahead of analysts’ expectations.

The British lender said on Friday that pre-tax operating profits for the first three months of the year were £ 1.2 billion, up 40% from the previous year and higher than the £ 755m the city had expected. The data do not include the Bank of Ulster branch in the Republic of Ireland from which it leaves.

Revenue rose 17% to £ 3bn, surpassing the £ 2.7bn consensus forecast.

The lender also announced the release of £ 38 million of reserves against potential loan losses, less than the £ 98 million released in the first quarter of 2021, but significantly better than the provision of £ 105 million.

“Despite the challenging environment, I am pleased with our performance as we continue to perform well in the face of our strategy,” said CEO Alison Rose.

Rose said the lender, known by 2020 as RBS, had not yet seen significant signs of financial distress, but proactively approached clients to prepare them for potential difficulties.

At its annual meeting on Thursday, NatWest’s decision to increase executive pay passed with more than 90% of shareholders’ votes in favor, despite resistance Proxy Glass Lewis Consultant.

The plan will earn Rose a maximum bonus 43% higher than her potential payment from the previous year. The lender claimed it was time to adjust its salary to competitors.

In March the lender declined in the UK Less than 50 percent government-ownedDescribed by Chairman Howard Davis on Thursday as an “important symbolic moment.”

The lender has maintained its forecast from its annual report for 2021, although it says expected revenue for the year will be “comfortably” over £ 11 billion, excluding notable items.

NatWest quarterly profits hit £1.2bn as it benefits from higher rates Source link NatWest quarterly profits hit £1.2bn as it benefits from higher rates

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