NatWest Group has disclosed its highest annual profit since the period just before the 2007 financial crisis. The banking conglomerate reported a pre-tax profit of £6.2 billion for the year 2023, surpassing expectations.
Additionally, it appointed Paul Thwaite as its permanent chief executive, succeeding Dame Alison Rose, who resigned last year following revelations of discussing the closure of Nigel Farage's bank account. The board expressed confidence in Thwaite's ability to steer the group's future, particularly as it prepares for a potential public share offering, potentially as early as June.
Despite the government's 35% ownership stake, stemming from a £46 billion bailout during the financial crisis, UK Government Investments (UKGI) has been exploring a share sale since 2023, in line with the Chancellor's plans. NatWest, formerly known as the Royal Bank of Scotland, has seen gradual divestment of government shares since the bailout, primarily to institutional investors and back to NatWest itself. The group announced a 20% increase in pre-tax profits for 2023, alongside a £300 million share buyback.
However, it cautioned about the impact of a challenging economic environment on future earnings. NatWest disclosed a £356 million staff bonus payout for the year, down from £368 million in the previous year. In her annual report released on Friday, Rose's compensation package, including pay, pension contributions, and benefits for her notice period, was disclosed at £2.4 million, with additional foregone share awards and bonuses.
Richard Haythornthwaite has been appointed as the new NatWest chair, succeeding Sir Howard Davies, who faced criticism over the handling of Rose's departure.