NatWest Group has announced its strongest annual profit performance in 26 years, marking a significant milestone since the prelude to the 2007 financial crisis.

With a pre-tax profit of £6.2 billion for the year 2023, NatWest exceeded expectations, signaling robust financial health. The appointment of Paul Thwaite as the permanent chief executive follows the resignation of Dame Alison Rose, who stepped down last year amid controversy surrounding discussions about the closure of Nigel Farage's bank account. The board expressed confidence in Thwaite, affirming his suitability to steer the group towards a prosperous future.

The announcement coincides with preparations for a potential public offering of shares, possibly as soon as June. Currently, the government retains a 35% stake in the bank, a legacy of the £46 billion bailout during the financial crisis. UK Government Investments (UKGI), tasked with managing government holdings, has been exploring the option of a share sale since the chancellor's announcement in 2023. Over the years, the government has steadily reduced its ownership in NatWest, selling shares to institutional investors and the bank itself.

In addition to the impressive profit figures, NatWest disclosed a 20% year-on-year increase in pre-tax profits for 2023 and unveiled plans for a £300 million share buyback. While heightened interest rates have bolstered revenues, the bank cautioned about the challenges posed by a potentially adverse economic landscape, underscoring the need for vigilance in maintaining future earnings. Photo by Philafrenzy, Wikimedia commons.