NATWEST Group, owner of Royal Bank of Scotland, has reported an operating profit of £5.1 billion as its chief executive said the Edinburgh-based bank had no plans to change its strategy around Scottish independence, following the resignation this week of First Minister Nicola Sturgeon.
NatWest, which is 45.97 per cent owned by UK taxpayers, hiked profits by more than one-third as it reaped the benefit of soaring interest rates.
Chief executive Dame Alison Rose declared the bank was “acutely aware that many people and businesses are struggling right now and that many more are worried about what the future holds” amid the continuing cost-of-living crisis.
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Dame Alison received a pay package worth £5.2m for 2022, up from £3.6m the year before, following changes to the bank’s bonus structure for senior leaders.
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During a results call with reporters, Dame Alison was asked whether the bank’s strategy had changed around the Scottish independence debate. The question came at the end of a week that saw Nicola Sturgeon announce her decision to resign as First Minister. The bank stated ahead of the 2014 referendum that it would move its brass plaque from Edinburgh to London in the event Scotland voted to become independent.
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Dame Alison said: “Scottish independence is a matter for the Scottish people in Scotland. As you know we have significant business in Scotland. One in the three business we support, one in five people, one in seven households, so it is a significant part [of our business].
“We’re not making any plans and that’s very much for the Scottish people.”
Dame Alison said: "NatWest Group delivered a strong performance in 2022, with pre-tax profit up more than a third to £5.1 billion. We made considerable progress against our strategic goals, maintained a well-balanced loan book, and distributed significant capital to our shareholders, including the UK Government.
“Despite not yet seeing significant signs of financial distress among our customers, we are acutely aware that many people and businesses are struggling right now and that many more are worried about what the future holds. Our robust balance sheet, responsible lending and continued capital generation allow us to proactively support those who need it, whilst helping others to get ahead of the challenges to come.”
The bank reported that income surged to £13.1bn from £10.4bn during a which saw the Bank of England implement a series of interest rate hikes to combat inflation. The base rate is now 4%, having been 0.1% in December 2021.
NatWest’s net income margin, broadly the difference between the interest in charges on loans and what it pays on deposits, widened by 55 basis points to 2.85%.
Operating expenses were £71m lower in 2022 than in 2021.
Shares in NatWest were down sharply in morning trading.
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