NatWest Group plc has reported a strong financial performance for the year ended 31 December 2023. The Group Chief Executive, Paul Thwaite, highlighted a 20% increase in operating profit from the previous year, with a return on tangible equity of 17.8% and £3.6 billion of distributions to shareholders. The company's balance sheet strength has allowed it to support customers, and its performance is attributed to the services provided to help customers reach their financial goals and manage their money better.
The company's focus for the future is on delivering profitable growth, becoming more efficient, productive, and simpler to deal with, while managing costs and capital efficiently. NatWest Group reported a full year attributable profit of £4.4 billion and a return on tangible equity (RoTE) of 17.8%, exceeding their guided range. Total income excluding notable items was £14.3 billion, a 9.8% increase from 2022, primarily due to favorable yield curve movements, higher income in the markets business, and lending growth.
The net loans to customers excluding central items increased by £8.9 billion to £355.6 billion during 2023, reflecting growth in Retail Banking and Commercial & Institutional. Customer deposits excluding central items reduced by £13.8 billion to £419.1 billion, mainly due to the competitive environment for deposits and an overall market liquidity contraction. The company has provided £61.9 billion against its target to provide £100 billion climate and sustainable funding and financing between 1 July 2021 and the end of 2025.
NatWest Group's robust balance sheet is supported by strong capital and liquidity levels. The company proposed a final dividend of 11.5 pence per share and intends to commence an on-market buyback program of up to £300 million in 2024, with total distributions deducted from capital in the year amounting to £3.6 billion, or around 40 pence per share. The Common Equity Tier 1 (CET1) ratio of 13.4% was reported, and the liquidity coverage ratio (LCR) stood at 144%, representing £45.4 billion headroom above the 100% minimum requirement.
In conclusion, NatWest Group's 2023 annual results reflect a strong financial performance, with a focus on delivering for customers and shareholders, supported by a robust balance sheet and strong capital generation.