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NatWest reported better than expected results as it confirmed the permanent appointment of Paul Thwaite as chief executive.
The UK bank’s pre-tax operating profit in the three months to December, fell year on year to £1.3bn, beating analyst expectations of £1bn. Revenues, meanwhile, fell year on year to £3.5bn above market expectations of £3.4bn.
NatWest said that its net interest margin — the difference between the interest it receives on loans and the rate it pays for deposits — fell by 8 basis point in the fourth quarter to 2.86 per cent, well above analysts’ forecast of 1.97 per cent, as “favourable yield curve movement” helped offset lower deposits from customers moving their money to better returning savings products.
Despite rising living costs, the lender set aside £126mn in provisions for bad loans, compared with market expectations of £242mn thanks to strong credit quality across its portfolio.
NatWest’s board confirmed Thwaite’s appointment on Thursday. He stepped in after the resignation of former chief Dame Alison Rose at the height of the Nigel Farage “debanking” scandal last July.
