NatWest Group reports Q2 EPS 13.7p vs. 11p last year

H1 2024 attributable profit of GBP 2,099 million and a return on tangible equity of 16.4%. Q2 2024 total income excluding notable items of GBP 3,590 million was GBP 176 million, or 5.2%, higher than Q1 2024 primarily reflecting increased deposit income whilst H1 2024 was GBP 379 million lower than H1 2023 due to lower average deposit balances and mix changes and lending margin pressure. Net interest margin of 2.10% was 5 basis points higher than Q1 2024 primarily due to improved deposit margins. Common Equity Tier 1 ratio of 13.6% was 10 basis points higher than Q1 2024 reflecting the attributable profit and reduction in RWAs, partially offset by capital distributions. Chief Executive, Paul Thwaite, commented: “As the UK’s leading business bank, and one of the largest retail banks, NatWest Group’s strong performance is grounded in the vital role we play in the UK economy and in the lives of our 19 million customers. In the first half of the year, we have delivered an operating profit of GBP 3 billion, a return on tangible equity of 16.4% and a 6 pence interim dividend, up 9% on last year’s dividend. We are also pleased with the continued reduction of the Government’s stake, which has almost halved this year. We have made good progress against our strategic priorities, taking decisive action to grow and simplify our business and to manage our capital and costs more efficiently. There has been growth across all three of our businesses, we have attracted over 200,000 new customers and our acquisition from Sainsbury’s Bank is expected to add around one million customer accounts on completion. We have also agreed to acquire GBP 2.5 billion of UK prime residential mortgages from Metro Bank plc, adding further scale to our Retail Banking business. The positive momentum and progress in the first half reflect the ambition across the bank to deliver its full potential. Our customers are beginning to feel more confident, with activity increasing and asset quality remaining strong, and we are well positioned to help unlock growth across the UK through our unrivalled regional network. Fundamentally, if we succeed with our customers, we will succeed for our shareholders and the wider economy.”