Half Year 2024 NatWest Group PLC Earnings Call Transcript
Key Points
- NatWest Group PLC (NWG) reported a strong first half with significant growth, achieving an operating profit before tax of GBP3 billion and an attributable profit of GBP2.1 billion.
- The company announced an acquisition of a GBP2.5 billion portfolio of prime UK residential mortgages from Metro Bank, expected to close in the second half of the year.
- NatWest Group PLC (NWG) has grown its customer base organically by over 200,000, contributing to growth across the bank.
- The company is actively managing its capital, with a Common Equity Tier 1 ratio of 13.6%, and announced an interim dividend of 6p, up 9% from last year.
- NatWest Group PLC (NWG) is accelerating its digital transformation, enhancing customer experience through initiatives like digitizing customer journeys and introducing generative AI to its chatbot, Cora.
- The company is closing its hub in Poland as part of its simplification efforts, which may impact operations and employee morale.
- NatWest Group PLC (NWG) faces challenges with the competitive mortgage market, which has considerable pricing pressure.
- The company has not provided specific guidance on deposit growth, leaving uncertainty about future performance in this area.
- There is potential for volatility in income due to expected base rate cuts, which could impact the company's financial performance.
- NatWest Group PLC (NWG) is awaiting regulatory changes, such as the PRA publication of Basel 3.1 rules, which could introduce uncertainty and potential headwinds.
Good morning, and welcome to the NatWest Group H1 results 2024 management presentation. Today's presentation will be hosted by CEO, Paul Thwaite; and CFO, Katie Murray. After the presentation, we will take questions.
Good morning, and thank you for joining us today. I'll start with a business update, Katie will take you through the financial performance, and then we'll open it up for questions. You will have seen that it's been a busy first half. We announced our acquisition of a mortgage portfolio from Metro Bank today, our transaction with Sainsbury's last month, and we've also grown our customer base organically by over 200,000.
We are closing our hub in Poland as we continue to simplify the business, and our directed buyback in May further reduced the government shareholding, which is almost halved to less than 20%. These are good examples of our progress that I'll come back to later. At the same time, we've been working hard to support our customers, and this
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