The company attributed the increase in profits to good operating performance in core franchises, along with modest impairment releases
National Westminster Bank (NatWest) has reported a net profit attributable to ordinary shareholders of £620m for the first quarter ended 31 March 2021, a 115% increase compared to £288m for the same period last year.
The bank’s operating profit before tax (PBT) was £946m for the first quarter (Q1) of 2021, an increase of 82% compared to £519m for the same quarter in 2020.
Its Common Equity Tier (CET1) ratio was 18.2% for Q1 2021, which increased compared to 16.6% for the corresponding quarter in 2020.
The company attributed the increase in profits to good operating performance in core franchises, along with modest impairment releases.
NatWest chief executive officer Alison Rose said: “We continue to make progress against our strategic targets; growing in key areas, simplifying the bank and accelerating our digital transformation to meet the rapidly evolving needs of our customers.
“We are also pleased that we were able to use some of our excess capital to buy back shares from the UK Government.
“Defaults remain low as a result of the UK Government support schemes and there are reasons for optimism with the vaccine programmes progressing at pace and restrictions being eased.”
NatWest’s Retail Banking business reported a total income of £1.05bn for Q1 2021, a decrease of 8.6% compared to £1.15bn for the same quarter of the previous year.
The firm’s Private Banking business reported a total income of £185m for Q1 2021, an 8% decline compared to £201m for the same period in 2020.
The Commercial Banking division of NatWest reported a total income of £941m for Q1 2021, a 6% decline compared to £1bn for the corresponding quarter last year.