NatWest has reported its largest profit since before the 2008 financial crisis. The bank group recorded a profit of £5.1bn in 2022 leading to an increase in bankers’ bonuses.
This is the second year in a row NatWest, the parent company of the Royal Bank of Scotland, has increased bonuses due to strong performance to £367.5m. That is the biggest pot shared out by its bankers since 2015 and is up from £298m last year.
The profit comes from a surge in loan and mortgage charges for its borrowers. The lender is still 46% owned by the UK government and said the 33% rise in profit marked its highest pre-tax earnings since the bank almost collapsed and was forced to take a £45bn taxpayer bailout at the height of the global financial crisis.
NatWest last reported a higher profit in 2007 when they hit £10 billion. Chief executive of NatWest Group, Alison Rose, said: “NatWest Group delivered a strong performance in 2022.
“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,” she added. “Our robust balance sheet, responsible lending and continued capital generation allow us to proactively support those who need it, while helping others to get ahead of the challenges to come.”