NatWest posted half-year results with solid operating profit, raised full-year guidance, and announced the acquisition of a mortgage book from Metro Bank and Sainsbury's Bank accounts.
NatWest (LSE:NWG) shares strengthened, to close Friday’s session 7% higher, after a positive showing in its first half results.
The UK lender reported an operating profit of £3 billion – albeit, pre-tax profit was down 4.1% at £1.7 billion.
Additionally, Natwest announced the acquisition of a £2.4 billion mortgage book from Metro Bank – adding to a recent deal to acquire Sainsbury's Bank accounts, adding about one million accounts.
It also revealed it had incurred £24 million in costs from an abandoned campaign, initially planned by the previous government, designed to privatize a portion of NatWest’s state-owned shares but was halted due to the early election call.
The government’s divestments of its holding in Natwest resumed following the election.
NatWest also upgraded its full-year profit forecast, expecting a return on tangible equity to rise above 14%. The bank’s net interest income fell by 2.4% to £2.8 billion.
Chief executive Paul Thwaite stated that NatWest had made significant progress in growing and simplifying its business, attracting over 200,000 new customers.
Analysts cheered the results, and here … we’ve curated some of the highlights.
In London, Natwest shares closed Friday 7% higher, at 361.9p.
