NatWest bank profits surge a third to £5.1bn

NatWest’s profits increased by over a third, reaching £5.1bn in the previous year due to the bank’s intensified mortgage lending and higher income from increased interest rates.

Last year, the British banking corporation awarded its CEO, Dame Alison Rose, a £5.25m payout, marking the first time it granted an annual bonus since its 2008 bailout.

Furthermore, it elevated its bankers’ bonus pool by almost £70m, accumulating to £367.5m in 2022. As the bank moves closer to being privately owned again, it relinquished £2.6bn to the UK Government in the same year. NatWest is no longer controlled primarily by the state.

NatWest, still partially state-owned at 45%, announced that it awarded its CEO, Dame Alison Rose, a bonus last year for the first time since its 2008 bailout.

This decision was revealed just days after the bank was questioned by MPs regarding the delay in savings rate increases compared to quick hikes in mortgage and loan costs.

The bank reported a 33% profit surge to £5.1bn in 2022 due to increased mortgage lending and higher interest rates.

NatWest’s bonus pool for bankers also increased by almost £70m to a total of £367.5m last year, and the bank returned £2.6bn to the UK Government.

NatWest, previously known as Royal Bank of Scotland, was saved from collapse during the 2008 financial crisis with a £45.5bn government bailout.

Meanwhile, rival bank Barclays recently announced a reduction in its bonus pool after a decline in profits caused by a trading mistake and a slowdown in dealmaking, leading to a drop in the bank’s shares by almost 10%. Barclays’ pre-tax profits fell by almost 15% to £7bn compared to the previous year’s £8.2bn.

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