NatWest Group plc has reported a strong performance in the first quarter of 2024, with an operating profit of £1.3 billion. The Chief Executive, Paul Thwaite, emphasized the bank's focus on delivering disciplined growth across its three businesses and becoming simpler, more productive, and easier to deal with. The bank's Q1 2024 attributable profit was £918 million, with a return on tangible equity (RoTE) of 14.2%.
The total income, excluding notable items, was £3,414 million, with a net interest margin (NIM) of 2.05%, 6 basis points higher than Q4 2023. The bank reported a net impairment charge of £93 million, reflecting the continued strong performance of its lending book, with stable and low levels of default across the portfolio.
NatWest Group's balance sheet showed strong capital and liquidity levels, with net loans to customers increasing by £1.4 billion and customer deposits increasing by £0.9 billion in the quarter. The bank has provided £68.5 billion of its target to provide £100 billion climate and sustainable funding and financing between 1 July 2021 and the end of 2025.
The bank's Common Equity Tier (CET1) ratio was 13.5%, 10 basis points higher than Q4 2023, and the liquidity coverage ratio (LCR) stood at 151%, representing £53.8 billion headroom above the 100% minimum requirement. The bank's outlook for the year retains the guidance provided in the 2023 Annual Report and Accounts, with the exception of full-year 2024 Group operating costs, which are now expected to be broadly stable compared with 2023.
Overall, NatWest Group's Q1 2024 performance reflects its focus on disciplined growth, strong capital and liquidity levels, and commitment to sustainable funding and financing, positioning the bank for continued success in the future.