Chief Executive, Paul Thwaite, commented:
“The strength of NatWest Group’s performance is underpinned by the support we provide to our 19 million customers in every nation and region of the UK. By continuing to deliver against our strategy, we are growing and simplifying our bank whilst managing our capital more efficiently.
As the UK’s biggest bank for business, and one that serves millions of households, NatWest Group plays a key role in driving economic growth across the UK. Throughout the third quarter of 2024, we have grown our lending, helping customers to buy or remortgage their homes or to start and grow their businesses. With customer activity increasing, defaults remaining low and optimism amongst businesses and consumers, we are well placed to succeed with our customers and for our shareholders in the months and years ahead.”
Q3 2024 performance
- Attributable profit of £1,172 million and a return on tangible equity (RoTE) of 18.3%.
- Total income excluding notable items(1) of £3,772 million was £182 million, or 5.1%, higher than Q2 2024 primarily reflecting lending and deposit growth and margin expansion. Net interest margin (NIM) of 2.18% was 8 basis points higher.
- Other operating expenses were £144 million lower than Q2 2024.
- Net impairment charge of £245 million or 25 basis points of gross customer loans.
- Levels of default remain at low levels across the portfolio.
- Net loans to customers excluding central items increased by £8.4 billion in the quarter, of which £2.3 billion was in relation to the Metro Bank mortgage portfolio acquisition, with strong growth across the three businesses, including a £1.4 billion increase in mortgage balances.
- Customer deposits excluding central items increased by £2.2 billion with growth across all three businesses driven by savings.
- The liquidity coverage ratio (LCR) of 148%, representing £52.7 billion headroom above 100% minimum requirement, decreased by 3 percentage points compared with Q2 2024.
- TNAV per share showed good growth in the quarter as the profit drove a 12 pence increase to 316 pence.
- Common Equity Tier 1 (CET1) ratio of 13.9% was 30 basis points higher than Q2 2024. Capital generation pre distributions was 57 basis points in the quarter and 197 basis points for the year to date. RWAs of £181.7 billion increased by £0.9 billion.
Q3 year to date performance
- Attributable profit of £3,271 million and a RoTE of 17.0%.
- Total income excluding notable items(1) of £10,776 million was £121 million, or 1.1%, lower than prior year. NIM was 2.11% for the year to date.
- Other operating expenses were £140 million higher than the same period of 2023, or £38 million (0.7%) higher excluding costs in relation to a retail share offering(2) of £24 million and additional bank levies of £78 million.
- Net impairment charge of £293 million or 10 basis points of gross customer loans and levels of default remain stable for the year to date.
- Net loans to customers excluding central items increased by £8.1 billion reflecting £6.2 billion of growth in Commercial & Institutional and £2.3 billion in respect of the Metro Bank mortgage portfolio acquisition.
- Customer deposits excluding central items increased by £8.3 billion, including £4.0 billion of growth in Retail Banking, £2.0 billion in Private Banking and £2.3 billion in Commercial & Institutional.
