Royal Bank of Scotland owner beats expectations with profit


3rd November 2020

NatWest Group became the latest bank to beat gloomy expectations as it reported a profit when analysts had predicted a loss.

The company, which owns the Royal Bank of Scotland, said on Friday that pre-tax profit had hit £355 million in its most recent quarter, against the £75 million forecast loss.

Last year the bank lost £8 million over the same three-month period.

Chief executive Alison Rose said: “These results demonstrate the resilience of our underlying business and the strength of our balance sheet in the face of significant continued uncertainty.

“Our sector-leading capital position, strong levels of liquidity and consistent approach to risk mean we can continue to provide our customers and communities with the support they need.”

Earlier this week, HSBC indicated that it could start charging customers for providing current accounts, as interest rates remain at record lows and could go negative.

Ms Rose said on Friday that NatWest has “no current plans to change our pricing structure”.

Asked if she would rule out ever charging for a current account, she said there are “no plans to do so at the moment”.

Quizzed on when dividends could return, she said it is her intention to start paying them again as soon as possible.

Early in the coronavirus crisis, the Bank of England’s Prudential Regulation Authority asked banks to stop paying dividends to their shareholders, ensuring that billions of pounds were available to instead support the economy.

To read the full article, visit The Courier Online

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