The high-street lender has just announced its highest annual profit since 2007 and plans to issue shares to retail investors. Matthew Partridge reports
NatWest’s shares jumped by more than 5% last week when it announced its biggest yearly profit since the financial crisis, says Kalyeena Makortoff in The Guardian. The £6.2bn earned in 2023, up 20% from the year before, will set a high benchmark for Paul Thwaite, who was also confirmed as permanent CEO on Friday.
Thwaite became interim CEO last summer after an outcry over the decision to withdraw banking services from Nigel Farage forced the exit of Alison Rose. Thwaite will be running the bank alongside incoming chair Rick Haythornthwaite.
There is a general feeling that Thwaite’s appointment is “probably what’s needed for NatWest”, says Ben Martin in The Times. It should provide stability following a difficult period for the group, which not only saw Rose depart, but also commissioned a review by the Financial Conduct Authority.
Uncertainty over who would lead the company has hampered the sale of the government’s 35% stake, with the head of UK Government Investments stating that “clarity” was required before ministers could press ahead with the first retail offer of shares owned by taxpayers.
An uphill struggle
It’s clear that the government has a “tough sell” on its hands if it wants to get the public behind a share offer, says Aimee Donnellan on Breakingviews. While the bank’s “relatively decent” performance in 2023 could have encouraged the British public to buy shares, falling interest rates and a weak economy make for a “dicey” investment case.
In particular, lower rates will cut the margin NatWest can earn on lending out deposits, while lacklustre growth may
