- NatWest press release ( NYSE: NWG ): Q4 GAAP EPS of 13.10p.
- Total income of £3.71B (+42.7% Y/Y).
- The liquidity coverage ratio of 145%, representing £52.0B headroom above 100% minimum requirement, decreased by 27 percentage points compared with 2021.
- The CET1 ratio of 14.2% was 170 basis points lower than the position on 1 January 2022 principally reflecting distributions and linked pension accruals of c.310 basis points partially offset by the attributable profit, c.190 basis points.
- RWAs of £176.1B were £0.2B lower than 1 January 2022 as lending growth and model changes were offset by a £5.7B reduction in the Republic of Ireland.
- Outlook 2023: " We continue to expect to achieve a return on tangible equity for the Group of 14-16%. Income excluding notable items for the Group is expected to be around £14.8 billion and full year NIM around 3.20%, based on a Bank of England base rate of 4.00% through the remainder of 2023. We expect to deliver a Group cost:income ratio (excl. litigation and conduct) below 52% or around £7.6 billion of Group operating costs, excluding litigation and conduct costs. We expect to generate and return significant capital to shareholders through 2023."
- Medium term : "We continue to target a sustainable return on tangible equity for the group of 14-16% over the medium term. We expect to deliver a Group cost:income ratio (excl. litigation and conduct) of less than 50%, by 2025. We expect that RWAs could increase by a further 5-10% by the end of 2025, including the impact of Basel 3.1. We expect to continue to generate and return significant capital via ordinary dividends and buybacks to shareholders over the medium term and continue to expect that the CET1 ratio will be in the range of 13-14%."
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NatWest GAAP EPS of 13.10p, total income of £3.71B; issues outlook for FY23 and beyond