NatWest — the banking group formerly known as RBS — has reported a 2024 pretax operating profit of £6.2 billion, up 0.3% on the prior year and ahead analyst estimates.
The bank is proposing a final dividend to shareholders of 15.5p per share, bringing the total for the year to 21.5p, up 26% on 2023.
NatWest said it distributed £4 billion to shareholders in 2024 through a combination of dividends and buybacks.
The company confirmed it intends to increase its ordinary dividend payout ratio from 40% of attributable profit to 50% from 2025 and will consider buybacks as appropriate.
For 2024, NatWest said its total income excluding notable items rose 2.2% to £14.6 billion. Net interest margin (NIM) of 2.13% was 1 basis point higher than 2023.
NatWest said net loans to customers in 2024 increased £12.9 billion to £368.5 billion and customer deposits increased £12.2 billion to £431.3 billion.
In its outlook, NatWest said in 2025 it expects income excluding notable items to be in the range of £15.2 billion to £15.7 billion.
The UK government, which bailed out RBS in a £45 billion rescue deal during the last financial crisis, has gradually reduced its stake in NatWest to less than 7%.
NatWest said: “2025 is also likely to be the year that NatWest Group returns to full private ownership. The acceleration towards privatisation has attracted investment from those that share our growth ambition and will mark a new, forward-looking chapter for the bank.”
NatWest shares have risen more than 100% over the last year to give it a current stock market value of about £34 billion.
NatWest CEO Paul Thwaite said: “NatWest Group delivered a strong performance in 2024 with income excluding notable items of £14.6 billion and a return on tangible equity of 17.5%, exceeding our upgraded guidance.
“Throughout the year, we made good progress against our strategic priorities by growing all three of our customer businesses, improving productivity and actively managing our capital.
“This performance is grounded in the support and services we provide to over 19 million customers, whether buying or refinancing their homes, helping them to invest or growing their businesses. Alongside this, we were also pleased to see an accelerated reduction in the government’s shareholding.
“I am proud of all that our colleagues achieved in 2024, but our focus is firmly on the future. We have positive momentum behind us and a clear ambition to succeed with customers as we continue to build a simpler, more integrated and technology-driven bank that is capable of even greater impact.
“As we enter a new, forward-looking chapter for NatWest Group, I am optimistic about the opportunities ahead of us to grow our business as a vital and trusted partner to our customers and the UK itself and, in doing so, create further value for our shareholders.”