NatWest Group has announced its most substantial annual profit since the eve of the financial crisis in 2007, registering a pre-tax profit of £6.2bn for 2023, surpassing expectations.
Paul Thwaite has been confirmed as the new permanent CEO, succeeding Dame Alison Rose, who stepped down last year following her admission of discussing Nigel Farage’s bank account closure.
The board has expressed confidence in Thwaite, describing him as the “right person” to lead the bank’s future endeavors.
This announcement comes as NatWest prepares for a potential public share offering, possibly as soon as June, with the government still holding a 35% stake in the bank following a £46bn bailout during the financial crisis.
UK Government Investments (UKGI) has been considering a share sale since the chancellor’s announcement in 2023, marking a continuation of the government’s gradual reduction of its stake in NatWest, formerly known as the Royal Bank of Scotland, primarily through sales to institutional investors and repurchases by NatWest itself.
The bank revealed a 20% increase in pre-tax profits for 2023 compared to the previous year and announced a £300m share buyback plan.
Despite benefiting from higher interest rates, NatWest cautioned that challenging economic conditions might affect its future profits.
The bank also disclosed a reduction in staff bonuses to £356m from £368m last year.
In its latest annual report, NatWest detailed that Dame Alison Rose will receive £2.4m for her notice period ending on 26 July, without the additional £5.1m in share awards or up to £2.8m in bonuses and other awards due to her not being classified as a “good leaver.”
Richard Haythornthwaite is set to replace Sir Howard Davies as the chair of NatWest, bringing his experience from roles as chair of Ocado and the AA to NatWest when he assumes the position on 15 April.
Sir Howard Davies faced criticism last year for his support of Ms. Rose after the Farage account discussion became public, leading to her resignation shortly thereafter.
