ROYAL Bank of Scotland owner NatWest Group returned to the black last year as the economy continued its recovery from the pandemic, and pledged to commence a £750 million share buyback in the first half of the year.
But shares were down more than three per cent in early trading, as chief executive Alison Rose stated the bank was “acutely aware of the challenges” families and businesses face from the growing cost of living crisis.
NatWest this morning reported a profit attributable to ordinary shareholders of £2.95 billion for 2021, roaring back to profitability following a loss of £753m the year before.
The bank, which remains majority-owned by UK taxpayers because of a £45.5bn bailout at the height of the financial crisis, was boosted during the year by strong mortgage growth and a low level of defaults on loans.
Ms Rose stated that the lender was “not yet seeing any impact” of the cost of growing living crisis, which is expected to see inflation rise to 7.25% in spring amid surging energy costs.
She said: “We are acutely aware of the challenges that many people, families and businesses continue to face up and down the country and are working alongside our customers to provide the support they need – whether that is managing their money better, saving for a house or retirement or starting or growing a new business – as well as playing a leading role in the transition to net zero.”
Ms Rose said the bank would continue to monitor customer behaviour when asked if it planned further branch closures in a week when it announced a further 32 would be closing south of the Border. She said 60% of active current account customers now exclusively bank with NatWest using its digital channels.
A final dividend of 7.5p was proposed and the bank said it would start a £750m share buyback in the first half of the year.
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