NatWest Group PLC has reported its interim results for the period ending 30 June 2024. The company reported an attributable profit of £1,719 million and a Common Equity Tier 1 (CET1) ratio of 11.4%. Total income decreased by £747 million to £5,863 million, reflecting a change in customer deposits as they move towards interest-bearing and term balances. Operating expenses increased by £193 million to £3,458 million, mainly due to higher staff costs, profit sharing arrangements, and the Bank of England Levy. The cost:income ratio increased to 59.0% compared to 49.4% in H1 2023.
The company's net loans to customers decreased by £2.8 billion to £315.7 billion, primarily due to Treasury reverse repo activity and a reduction in mortgage balances, partly offset by growth in reference rate lending. Customer deposits decreased by £0.4 billion to £313.4 billion, driven by a reduction in Treasury repo activity, offset by an increase in customer deposits largely driven by growth in savings and term products. The loan:deposit ratio decreased to 95.3%, reflecting a reduction in customer lending and an increase in bank deposits during the period.
NatWest Group's total income decreased by £747 million, with net interest income decreasing by £308 million and non-interest income decreasing by £439 million. The company reported a robust balance sheet with strong capital and liquidity levels, despite a decrease in the CET1 ratio to 11.4%. The impairment loss of £47 million reflects good book releases, and defaults remain stable and at low levels across the portfolio.
In summary, NatWest Group PLC's interim results for 2024 show a decrease in total income and net interest income, an increase in operating expenses, and a decrease in the CET1 ratio. The company's balance sheet remains robust, with a focus on managing customer deposits and loans to maintain a healthy loan:deposit ratio.