NatWest Group reported full-year 2024 attributable profit of £4.5 billion on Friday, with earnings per share of 53.5 pence — up 5.6 pence year-on-year — and a return on tangible equity of 17.5%, as the Edinburgh-headquartered bank grew all three of its principal customer businesses and distributed £4.0 billion to shareholders through dividends and share buybacks over the course of the year.
Operating profit for the year reached £6.2 billion, up 0.3% year-on-year, while total income excluding notable items was £14.6 billion, an increase of 2.2% compared with the prior year. The net interest margin of 2.13% was broadly stable, edging up by one basis point compared with 2023, despite the gradual reduction in Bank of England base rates that began in August 2024, according to results published on the bank's website. The bank's CET1 ratio stood at 13.6% at year-end, within its 13-14% target range.
INCOME GROWTH AND CUSTOMER EXPANSION
NatWest welcomed approximately 500,000 new customers during 2024, adding to the deposit and current account base across its retail, private and commercial banking divisions.
Total income excluding notable items rose 2.2%, principally reflecting deposit margin expansion and lending growth. The net interest margin was supported by deposit margin expansion and higher structural hedge margins.
SHAREHOLDER DISTRIBUTIONS AND PAYOUT POLICY SHIFT
Total distributions of £4.0 billion in 2024 comprised ordinary dividends and buybacks executed throughout the year. The full-year dividend per share rose 26% to 21.5 pence. The bank simultaneously announced a change to its dividend payout ratio target, raising it from approximately 40% to approximately 50% of attributable profit with effect from 2025.
The bank's management indicated that capital returns would remain a priority provided the CET1 ratio was maintained within its target range and the macroeconomic environment remained broadly supportive.