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LONDON - NatWest Group plc announced a robust financial performance for the year ended December 31, 2024, with the bank's attributable profit reaching £4.5 billion, marking a 12% increase from the previous year. The group's return on tangible equity (RoTE) stood at 17.5%, exceeding its upgraded guidance.
The bank's full-year performance showcased a notable rise in earnings per share, up by 5.6 pence to 53.5 pence, and a tangible net asset value (TNAV) per share increase of 37 pence to 329 pence. NatWest Group also proposed a final dividend of 15.5 pence per share, culminating in a total year dividend of 21.5 pence, a 26% increase compared to 2023.
The Common Equity Tier 1 (CET1) ratio improved to 13.6%, a 20 basis point increase over the previous year-end. This capital generation was supported by a modest rise in total income excluding notable items, which saw a £0.3 billion or 2.2% increase mainly due to deposit margin expansion and lending growth. The bank's net interest margin (NIM) experienced a slight 1 basis point increase from 2023, reaching 2.13%.
Operating expenses rose by £213 million or 2.8% from the previous year, attributed in part to a retail share offering and additional bank levies. Excluding these costs, the increase was 1.1%. The bank also reported a net impairment charge of £359 million for 2024.
Net loans to customers, excluding central items, grew by £12.9 billion or 3.6%, with significant contributions from Retail Banking and Commercial & Institutional segments. Customer deposits, excluding central items, also saw an increase of £12.2 billion or 2.9% during 2024, with savings growth partially offset by lower current account balances in Retail and Private Banking.
The liquidity coverage ratio (LCR) stood at 150%, indicating a strong liquidity position with a £53.4 billion headroom above the 100% minimum requirement.
Based on a press release statement, NatWest Group's Chief Executive, Paul Thwaite, expressed optimism about the bank's future prospects, highlighting its customer-focused strategy and technological advancements as key drivers for continued growth and shareholder value creation.
The financial results reflect NatWest Group's commitment to supporting its customer base, which includes over 19 million individuals and businesses, through various services and initiatives. The bank's strategic acquisitions, such as the retail assets and liabilities from Sainsbury (LON:SBRY)'s Bank and a prime residential mortgage portfolio from Metro Bank, have further bolstered its growth trajectory.
Looking ahead, NatWest Group expects to achieve a RoTE in the range of 15-16% in 2025, with income excluding notable items anticipated to be between £15.2-15.7 billion. The bank also aims to maintain operating costs around £8.1 billion, excluding litigation and conduct costs, and a loan impairment rate below 20 basis points. The CET1 ratio target remains within the 13-14% range, with intentions to pay ordinary dividends of around 50% of attributable profit from 2025 onwards.
The information provided is based on a press release statement and does not include any speculative or promotional content.
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