The logo of NatWest, the retail arm of Royal Bank of Scotland (RBS), outside a bank branch on Tuesday, June 26, 2012 in London, England.
Simon Dawson | Bloomberg | Getty Images
NatWest said on Friday its first-half operating profit before tax fell 16%, below forecasts, to 3 billion pounds ($3.86 billion), as competition in the mortgage market and savers shifted their savings to higher-yielding products , causing profit margins to take a hit.
The British bank also said it would spend 2.4 billion pounds to buy a portfolio of prime residential mortgages from Metro Bank to build out its retail banking business.
NatWest raised its 2024 return on tangible equity forecast to more than 14% from a previous forecast of 12%, signaling confidence in its performance for the rest of the year.
Revenue this year is expected to be around £14bn, up from a previous forecast of £13bn to £13.5bn.
Similar earnings came on Thursday from rival Lloyds Banking Group, which reported a 14% drop in first-half profits but showed signs of optimism about the economic outlook for the second half.
NatWest chief executive Paul Thwaite said on Friday: “With increased activity and strong asset quality, our customers are starting to become more confident and we are well-positioned to help unlock opportunities across the UK through our unparalleled regional network. growth of.
The British bank said this month that the government’s stake in the lender had fallen below 20%, bringing it closer to full private ownership after receiving a state bailout during the 2008 financial crisis.
