NatWest Group plc has reported a strong performance in the first half of 2024, with an operating profit of £3 billion and a return on tangible equity of 16.4%. The Chief Executive, Paul Thwaite, highlighted the bank's progress in strategic priorities, including growth, simplification of business, and efficient capital and cost management. The bank has seen growth across all three of its businesses, attracted over 200,000 new customers, and is set to acquire around one million customer accounts from Sainsbury's Bank. Additionally, NatWest Group has agreed to acquire £2.5 billion of UK prime residential mortgages from Metro Bank plc, further enhancing its Retail Banking business.
The bank's positive momentum and progress in the first half reflect its ambition to deliver its full potential. The bank's strong performance is attributed to the vital role it plays in the UK economy and the lives of its 19 million customers. The bank's customers are showing increased confidence, with activity rising and asset quality remaining strong. NatWest Group is well-positioned to help unlock growth across the UK through its regional network.
In terms of financial performance, the bank reported an attributable profit of £2,099 million and a return on tangible equity (RoTE) of 16.4% in H1 2024. The net interest margin (NIM) of 2.10% was 5 basis points higher than Q1 2024, primarily due to improved deposit margins. The bank also reported a net impairment charge of £48 million in H1 2024, with levels of default remaining stable and at low levels across the portfolio.
NatWest Group also highlighted its robust balance sheet with strong capital and liquidity levels. The bank's net loans to customers decreased by £1.7 billion in the quarter, offset by UK Government scheme repayments and lower mortgage balances as customer redemptions offset new lending. The bank has provided £78.3 billion against its target to provide.