NatWest profits beat expectations as loans, deposits rise

(Sharecast News) - Annual profit at UK bank NatWest beat expectations as it grew its loan book and pulled in more deposits, boosted by an increase in customers.

Pre-tax operating profit rose 0.3% to £6.2bn in the 12 months to December 31 compared with estimates of £6.1bn. Net interest margin - the difference between loan and savings rates - was 1 basis point higher at 2.13%.

NatWest said it expected to achieve a return on tangible equity in the range of 15-16% this year and more than 15% by 2027.

Net loans to customers excluding central items increased by £13bn to £368.5bn reflecting a £3.2bn increase in retail banking, of which £2.2 billion relates to the Metro Bank mortgage portfolio, and a £10bn rise in commercial & institutional operations.

Customer deposits excluding central items rose 2.9% to £12.2bn to £431.3 billion as savings growth was partially offset by lower current account balances within retail and private banking.

Reporting by Frank Prenesti for Sharecast.com