NatWest Group has reaffirmed its commitment to expanding its footprint in the UK mortgage market after posting a resilient financial performance in 2024.
Despite a reduction in interest rates, the FTSE 100 lender reported a pre-tax profit increase of 0.3% to £6.2 billion, exceeding analysts’ expectations.
Chief Executive Paul Thwaite hailed the bank’s ability to maintain profitability, citing disciplined growth, operational efficiency and risk management.
The group’s net interest margin rose by one basis point to 2.13%, defying concerns that lower borrowing costs would erode earnings.
Additionally, impairment losses came in significantly lower than anticipated, at £359 million compared to analysts’ expectations of £495 million.
PIVOTAL ROLE
A key element of NatWest’s growth strategy involves deepening its relationships with mortgage intermediaries. Recognising the pivotal role brokers play in the housing market, the bank is prioritising faster approvals, enhanced digital tools and competitive mortgage products to support both first-time buyers and those refinancing existing loans.
Thwaite told the City in a statement this morning: “To complement the organic growth that we have generated in retail banking, we were proactive in making a number of acquisitions that build on our existing areas of strength.
“Our acquisition of the retail assets and liabilities from Sainsbury’s Bank will add around one million retail banking customer accounts when it is completed. And, in September 2024, we also acquired £2.3 billion of prime residential mortgages from Metro Bank. Both transactions help accelerate growth at attractive returns, in line with our strategic priorities.”
Mortgage Soup revealed this morning how Nigel Farage is preparing to launch private criminal proceedings against NatWest Group over the debanking scandal that cost former CEO Dame Alison Rose her job.
