NatWest Group PLC, through its subsidiary NatWest Markets Group, reported a loss of £98 million for the year ended 31 December 2023, a significant improvement from the £264 million loss in 2022. The increase in income to £1,069 million was driven by stronger performances in Fixed Income and Capital Markets, as well as a new profit share arrangement with fellow NatWest Group subsidiaries. Operating expenses slightly rose, with a decrease in litigation and conduct costs offset by an increase in other operating expenses.
Total assets and liabilities decreased to £177.9 billion and £171.5 billion respectively, mainly due to lower derivative fair values and an overall reduction in interest rates. NatWest Markets Plc's Common Equity Tier 1 (CET1) ratio was 17.1% at 31 December 2023, and the total MREL was £7.6 billion, or 34.5% of RWAs. The liquidity portfolio at 31 December 2023 was £14.7 billion with an LCR of 183%.
In terms of funding, NWM Plc issued £2.4 billion of public benchmark transactions during 2023, and the 2024 funding plan anticipates £3-5 billion of public benchmark issuance. Looking ahead, the company aims to generate sustainable and attractive returns over the medium term, with an estimated CET1 ratio of ~14%, MREL ratio of >30%, and leverage ratio of >4%.
The Chief Executive stated, "In 2023, we continued to support our customers as they navigated macroeconomic uncertainty and geo-political challenges - from inflation and changing interest rates to supply-chain disruption." This reflects the company's commitment to sustainable growth and support for its customers amidst economic challenges.