---
title: "NatWest Group PLC profit beats City expectations"
publisher: "Share Talk"
author: "sharetalk"
published: "2023-04-28T07:08:04+00:00"
modified: "2023-04-28T07:08:04+00:00"
date: 2023-04-28
canonical: "https://www.share-talk.com/natwest-group-plc-profit-beats-city-expectations/"
category: "B2B"
categories: ["B2B", "Business & Support Services", "Technology", "Technology, Media & Telecoms"]
tags: ["Aberdeen", "BANK", "banking", "branch", "Edinburgh", "Financial", "Glasgow", "local", "NatWest", "Retail", "Scotland", "services", "UK"]
image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&ssl=1"
format: "news"
language: "en-GB"
---

# NatWest Group PLC profit beats City expectations

**Published:** April 28, 2023
**Author:** sharetalk
**Categories:** B2B, Business & Support Services, Technology, Technology, Media & Telecoms
**Tags:** Aberdeen, BANK, banking, branch, Edinburgh, Financial, Glasgow, local, NatWest, Retail, Scotland, services, UK
**Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&ssl=1)

---

**NatWest Group PLC (LSE: NWG)** has reported strong growth in revenue and profit for the first quarter, although competition has led to a decrease in deposits.

The FTSE 100-listed lender described its Q1 2023 performance as “strong,” reporting an operating profit before tax of £1.82bn, up from £1.22bn from the previous year, and surpassing the City’s expected forecast of £1.6bn.

NatWest Group’s Chief Executive, Alison Rose, stated that the Q1 2023 performance was due to the lender’s robust balance sheet, high levels of capital and liquidity, and well-diversified loan book.

Total income increased by 37.2% to £1.04bn, primarily due to volume growth and yield curve movements. The bank also benefited from a rise in net interest margin, which climbed 7 basis points (bps) quarter-on-quarter to 3.27%.

https://twitter.com/Share_Talk/status/1651831050518032385?s=20

However, customer deposits were reduced by £11.1bn or 2.6% during the quarter, reflecting the impact of higher customer tax payments, competition for deposits, and an overall market liquidity contraction.

The CET1 ratio increased by 20 bps to 14.4%, while operating expenses rose by 12.5% due to higher staff costs and the exit from the Republic of Ireland. The lender made a bad debt provision of £70mln but confirmed that default levels remain stable at low levels.

NatWest Group reported an increase in lending to customers of 1.6% to £352.4bn, reflecting £3.9bn of mortgage growth in Retail Banking and a £1.6bn increase in Commercial & Institutional. The return on tangible equity was 19.8%, nearly double last year’s 11.3%, but down from 20.6% in Q4.

The lender has maintained its guidance for the current financial year despite a decline in deposits.

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