2024-07-26 16:44:09 ET
NatWest Group PLC (NWG)
Q2 2024 Results Conference Call
July 26, 2024 04:00 AM ET
Company Participants
Paul Thwaite - Chief Executive Officer
Katie Murray - Chief Financial Officer
Conference Call Participants
Raul Sinha - JPMorgan
Alvaro Serrano - Morgan Stanley
Andrew Coombs - Citi
Jason Napier - UBS
Aman Rakkar - Barclays
Benjamin Toms - RBC
Chris Cant - Autonomous
Guy Stebbings - BNP Paribas
Edward Firth - KBW
Presentation
Operator
Good morning, and welcome to the NatWest Group H1 Results 2024 Management Presentation.
Today's presentation will be hosted by CEO, Paul Thwaite; and CFO, Katie Murray. After the presentation, we will take questions.
Paul Thwaite
Good morning, and thank you for joining us today. I'll start with a business update. Katie will take you through the financial performance, and then we'll open it up for questions. You all have seen that it's been a busy first half. We announced our acquisition of a mortgage portfolio from Metro Bank today, our transaction with Sainsbury's last month, and we've also grown our customer base organically by over 200,000. We are closing our hub in Poland as we continue to simplify the business, and our directed buyback in May further reduced the government shareholding, which is almost half to less than 20%. These are good examples of our progress that I'll come back to later.
At the same time, we've been working hard to support our customers, and this activity underpins our strong financial performance. So let me start with the headlines.
We have had a strong first half, with significant growth quarter-on-quarter. Income was £7 billion, and costs were £4 billion resulting in operating profit before tax of £3 billion, with attributable profit of £2.1 billion. Our return on tangible equity was 16.4%. Given the strength of our performance, together with our updated economic forecast, we are upgrading our 2024 guidance, which Katie will talk about later.
Improving consumer and business confidence is reflected in good customer activity across both sides of the balance sheet. Customers are increasing their savings, with deposit growth across our three businesses of more than £6 billion, whilst we attracted record flows to ISRE accounts, the overall mix of term deposits was stable. We see good activity in Commercial & Institutional banking, where lending grew by £3 billion, excluding government schemes. We provided £16 billion of climate and sustainable funding and financing, bringing the total to £78 billion since July 2021. Our target is to reach £100 billion by the end of 2025....
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NatWest Group PLC (NWG) Q2 2024 Earnings Call Transcript