NatWest, a bank that is 45% controlled by the state, just posted its biggest profits since the global financial crisis.

NatWest, a bank that is 45% controlled by the state, just posted its biggest profits since the global financial crisis.

In its 2022 full-year results, the bank reported earnings of £5.1 billion before taxes, a peak not seen since 2007.

The company's top executive, Dame Alison Rose, received a £5.25 million bonus for the first time since the disaster.

The overall bonus pool for bankers increased by approximately £70 million from the prior year to reach £367.5 million.

Due to the announcement of an £800 million share buyback programme, which would boost the bank's own stake, shareholders, including the state, will get a dividend of 10p per share.

NatWest has benefited from the higher interest rates that the Bank of England imposed on lenders in an effort to reduce inflation after the mini-budget market chaos.

Such rates have increased profits. Loan earnings increased after deducting interest payments. From 2.3% in 2021 to 2.85% in 2017, the margin increased.

NatWest has set aside £337 million - less than the £434 million projected - for the year to brace itself for the shock of clients who may default on loans as interest rates increase and cost of living concerns weigh on households. Yet, the banks claim that default rates are still low.

After the global financial crisis, the government bailed out NatWest, turning it into a state-owned enterprise. It was once referred to as the Royal Bank of Scotland group.

The government may now consider selling more of its shares due to higher profitability and an increase in share price.

(Skynews.co.uk, Natwestgroup.com)