NatWest appoints new chief executive as bank reveals highest profit since 2007

16 February 2024 , 08:33

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NatWest group has appointed Paul Thwaite as its permanent chief executive (Image: No credit)

NatWest Group has announced Paul Thwaite as its new permanent chief executive, and also revealed its highest yearly profit since before the 2008 financial crisis.

Mr Thwaite is taking over from Dame Alison Rose, who left her position following a debanking controversy last year. The NatWest board described Mr Thwaite as an "outstanding candidate and the right person to shape the future of NatWest".

The bank reported a pre-tax profit of £6.2 billion for 2023, which is the highest since the £9.9 billion made just before the global financial crisis in 2007. This figure exceeded analysts' predictions of a £6 billion profit for the year, and was a fifth higher than 2022, thanks to rising interest rates increasing the cost of borrowing.

However, NatWest admitted that it had been impacted by the more competitive savings rates environment. Customer deposits, not including one-off items, dropped by £13.8 billion during the year, as more customers looked for better deals on their savings. But the bank also noticed more people moving money into fixed-rate savings accounts.

Its net interest margin, which shows the difference between what a bank pays out for deposits and earns from loans, fell during the final three months of the year, compared with the previous quarter, as it paid out more to savers. Mr Thwaite expressed his pride in taking the lead at the bank, saying: "It is an exciting time for our sector and our bank. I am confident we can shape the future of NatWest to deliver its full potential."

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He added: "This year we are focused on the things we can control; delivering profitable growth, becoming more efficient, more productive, and simpler to deal with, whilst managing our cost and capital efficiently."

Mr Thwaite took over as the temporary head of NatWest in July after previously being in charge of the bank's commercial division. He filled the role left by Dame Alison following her departure amid controversy involving Nigel Farage's Coutts account, which is part of the NatWest group.

Dame Alison had been with the bank for over three decades, and her leaving was called a "sad moment" by NatWest's chairman Howard Davies, who noted she had given her entire career to the company.

Lawrence Matheson