NatWest outlook drags shares down despite profit jump | – #NatWest #outlook #drags #shares #profit #jump
LONDON, Feb 17 (Reuters) – NatWest ( NWG.L ) warned on Friday that rising interest rates may not deliver the long-term gains investors are hoping for, even as profits rose 33% last year.
The bank’s shares fell as much as 9% after investors digested 2023 profitability and cost forecasts, even as the bank’s annual pre-tax profit was 3.8 billion 5.1 from the pound billion per pound (6.1 billion dollars) reported rising.
Credit Suisse analysts said, based on the bank’s unchanged revenue target and costs expected to be 300 million pounds higher than analysts thought, “We widely think the results today would be viewed as a miss for 2023 expectations.”
NatWest shares were down 6% at 1153 GMT. Great Britain Rival Lloyds Banking Group (LLOY.L), which also focuses on the market, fell 3%.
State-backed NatWest increased payouts for shareholders, per share 10 pence announced a final dividend and an £800m share buyback.
Alison Rose, CEO of NatWest, said the bank’s strategy was paying off and was clear in its economic forecasts, which included predicting Bank of England interest rates to remain at 4% this year.
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He also 2008-20Still 44% after government bailout at peak of financial crisis in 09 tax because it is owned by its payers, it has raised the workers’ bonus fund by almost a quarter to £368m, drawing criticism.
Fran Boait, chief executive of Positive Money, which campaigns for a fairer financial system, said: “NatWest is using its bumper profit not just to support the public that bailed it out 15 years ago, but to deepen its bonus pool.”
Rose’s total pay package for 2022 is up nearly 50% from the previous year, from £3.6m to £5.2m.
NatWest Chairman Howard Davies, 20 of the figures10He said it reflects CEOs receiving annual bonuses for the first time since 2010 and includes long-term awards earned in previous years.
NatWest said the government would receive a total of £2.6bn for 2022 through the bank’s payments to shareholders.
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Britain economy narrowly avoided a technical recession at the end of 2022, official data showed last week, but inflation still oppress households and more credit may cause defaults.
Inflation, although on a downward trend, Britain it crushed the spending power of households and businesses and slowed the credit-backed housing market and investment.
NatWest set aside £337m for the year to cover potentially bad loans, although this was lower than the figure of more than £400m expected by analysts.
“While we have yet to see signs of significant financial distress among our customers, we are aware that many people and businesses are struggling right now,” Rose said.
While higher rates hurt borrowers, lenders benefit from the widening gap between what they charge borrowers and what they pay depositors.
NatWest’s revenue rose by more than a quarter to £13.2bn for the year, boosted by growth in its mortgage book.
creditor, court aims to achieve an income-to-income ratio of less than 52%, excluding litigation and conduct-related costs.
(1 dollars = £0.8372)
Reporting by Iain Withers and Lawrence White Editing by David Goodman and Jane Merriman
Our standards: Thomson Reuters Trust Principles.
2023-02-17 16:31:17
Source – reuters
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