NatWest Group plc Earnings Report (Q3 2021)

NatWest has reported a strong performance with its Q3 2021 results, increasing from the numbers reported this quarter last year. The results are considerably better than analyst predictions.

• Pre-tax operating profit was £1.1 billion, considerably higher than predictions.
• Return on tangible equity (RoTE) of 8.5%.
• CEtT1 ratio of 18.7%, 50 basis points higher than last quarter.
• Net lending (including UK Government support schemes) decreased by £1.7 billion to £361.0 billion.
• Net lending excluding UK Government support schemes increased by £2.9 billion.
• £2.5 billion increase in mortgage growth.
• Consumer deposits increased by £9.1 billion to £476.3 billion.
• RBSI retail and commercial business customer deposits increased by £8.5 billion.

Alison Rose, CEO of NatWest Group has said:

“Throughout Q3 2021, NatWest continued to deliver a strong operating performance; growing in key areas and accelerating our digital transformation to improve customer experience and make our business more efficient. Our robust capital position means that we have been able to buy back £402 million of our shares to date(1) whilst also investing for growth as we support our customers and drive sustainable returns to our shareholders.”

Despite the strong results, NatWest may be facing a fine up to £340 million after admitting it didn’t do enough to stop money laundering prior to 2016.

As of July 2021 the UK Government still holds a 54.7% stake in NatWest as a result of the bailout during the 2008 financial crisis. The intention currently stands to sell off the remaining stake the government holds by 2025-2026.

Overall NatWest Group has reported some very strong results, with a higher than average CET1 ratio of 18.7%, beating analyst predictions by considerable margins. At the time of publishing NatWest Group plc stock is up 0.47% following the results.

Written By

Jake Bywater