NatWest Markets posts £63 million profit for 2024

Published 14/02/2025, 08:04
NatWest Markets posts £63 million profit for 2024

LONDON - NatWest Markets Plc (NWM Plc), the investment banking arm of NatWest Group, reported a profit of £63 million for the year ended December 31, 2024, marking a significant turnaround from the £98 million loss recorded in the previous year. The improved performance was attributed mainly to a stronger showing across its primary business lines.

Income for the year rose to £1,237 million, up £168 million from £1,069 million in 2023. This increase was primarily driven by robust customer demand in capital markets and solid trading income. However, operating expenses also climbed by £66 million to £1,208 million, influenced by higher litigation and conduct costs, which rose by £42 million to £102 million, as well as increases in staff costs and other operating expenses.

Total (EPA:TTEF) assets and liabilities of NWM Plc expanded by £5.3 billion and £4.7 billion respectively, ending the year at £183.2 billion and £176.2 billion. This growth was largely fueled by a rise in loans to customers, trading assets, and cash balances at central banks.

The bank's capital position strengthened, with the Common Equity Tier 1 (CET1) ratio improving from 17.1% at the end of 2023 to 18.2% at the close of 2024. This was largely due to a decrease in risk-weighted assets (RWAs), which fell from £22.1 billion to £20.8 billion. Additionally, the leverage ratio increased from 5.0% to 5.5% over the same period.

On the liquidity front, NWM Plc's liquidity portfolio grew by £6.3 billion to £21.0 billion, with the Liquidity Coverage Ratio (LCR) reaching 195%. The bank issued a total of £6.0 billion in public benchmark transactions during 2024 and anticipates issuing £4-5 billion in 2025.

Looking ahead, NatWest Markets provided medium-term estimates, projecting a CET1 ratio of approximately 14%, an MREL ratio around 30%, and a leverage ratio near 4%. These figures supersede all prior guidance and are subject to changes due to various risk factors outlined in the company's annual report.

This performance summary is based on a press release statement from NatWest Markets Plc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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