NatWest Group PLC (NWG) - 2023 NatWest Group performance summary

[idpickering]

Chief Executive, Paul Thwaite, commented:

"We have delivered a strong performance in an exceptional macro environment. Our operating profit was up 20% on the year before, with a return on tangible equity of 17.8% and £3.6 billion of distributions to shareholders.

The strength of our balance sheet allows us to support our customers and our performance is grounded in the services we have provided to help them reach their financial goals and manage their money better.

As we look ahead, I am ambitious and confident for the future of NatWest Group. We should not underestimate the strength of our foundations or the opportunity to build deeper relationships with our 19 million customers. Our number one priority is to serve our customers well and provide them with the products, services, and expertise they need.

This year we are focussed on the things we can control; delivering profitable growth, becoming more efficient, more productive, and simpler to deal with, whilst managing our cost and capital efficiently. Together, these actions will drive long-term, sustainable value for our customers, shareholders, and the wider UK economy."

Strong financial performance and delivery against our targets

- Full year attributable profit of £4.4 billion and a return on tangible equity (RoTE) of 17.8%, above our guided range.

- Total income excluding notable items(1) of £14.3 billion increased by £1.3 billion, or 9.8%, compared with 2022 principally reflecting the impact of favourable yield curve movements, higher income in our markets business and lending growth partially offset by reduced deposit balances and mix changes and lending margin pressure.

- Bank net interest margin (NIM) of 3.04% was 19 basis points higher than 2022 with the increase reflecting favourable yield curve movements partially offset by lending margin pressure, reduced deposits balances and mix changes.

- Other operating expenses of £7.6 billion increased by £339 million, or 4.6%, compared with 2022. The cost:income ratio (excl. litigation and conduct) was 51.8% for 2023 compared with 55.5% for 2022.

- A net impairment charge of £578 million for 2023, or 15 basis points of gross customer loans, principally reflects continued low and stable levels of stage 3 defaults across the portfolio and good book charges related to unsecured lending.

And later;

Dividends

The company has announced that the directors have recommended a final dividend of £1.0 billion, or 11.5p per ordinary share (2022 - £1.0 billion, or 10.0p per ordinary share) subject to shareholder approval at the Annual General Meeting on 23 April 2024. If approved, payment will be made on 29 April 2024 to shareholders on the register at the close of business on 15 March 2024. The ex-dividend date will be 14 March 2024.

https://www.investegate.co.uk/announcem ... lc/8041346

Also posted on Company News here; viewtopic.php?p=647271#p647271

These are not often talked about here, but I suspect some hold them, so this may be of interest here.

Ian (No holding).

[88V8]

These are not often talked about here, but I suspect some hold them, so this may be of interest here.

I must admit to being one of the nutjobs who vaguely hopes for a renaissance.

V8 (small holding)

[kempiejon]

These are not often talked about here, but I suspect some hold them, so this may be of interest here.

I must admit to being one of the nutjobs who vaguely hopes for a renaissance.

V8 (small holding)

Wasn't there some chatter about the government unloading their/our holding pushing that renaissance a bit further out? A bullet I dodged though for banks I still have the Lloyds albatross round my neck. If I was starting from here NatWest might well be in the frame as the highest yielding bank and 5 year history of increasing dividends especially if I was inclined to look at forecasts too. Some might predict that'll be cut soon though.

[Dod101]

I must admit to being one of the nutjobs who vaguely hopes for a renaissance.

V8 (small holding)

Wasn't there some chatter about the government unloading their/our holding pushing that renaissance a bit further out? A bullet I dodged though for banks I still have the Lloyds albatross round my neck. If I was starting from here NatWest might well be in the frame as the highest yielding bank and 5 year history of increasing dividends especially if I was inclined to look at forecasts too. Some might predict that'll be cut soon though.

As I have said on the other thread, shareholders are getting a 15% increase in the dividend per share although the cost to the company remains the same at £1 billion. I do not follow this share but no doubt the pending intent of the Government to sell its remaining holding will hold the shares back for now anyway.

Dod