The following is a summary of the NatWest Group PLC (NWG) Q1 2024 Earnings Call Transcript:

Financial Performance:

• NatWest reported Q1 customer lending of £361bn, marking the sixth straight year of lending growth.

• Deposit balances exceeded expectations, rising to £420bn.

• Assets under management and administration increased to £43bn.

• Generated Q1 income was £3.4bn, with costs of £2bn, rendering an operating profit of £1.3bn.

• An attributable profit of £0.9bn resulted in a return on tangible equity of 14.2%, with a 3.4% increase in tangible net asset value per share to 302p.

• CET1 ratio increased to 13.5% for Q1, which included an accrual of £367m towards interim dividend.

• The bank completed a £500m buyback program from the previous year and began a new £300m buyback announced in February 2024.

• The net interest margin was 205 basis points, up 6 points from the last quarter.

Business Progress:

• Net lending to UK corporates continued to rise as business confidence improved.

• The bank is planning to complete the existing £300m buyback by July 2024 and has the capacity for another buyback that is set to commence in late May.

• Total bank levies for the year are expected to be around £200m, a 50% increase from the previous year.

• The bank is expecting to maintain an impairment rate below 20 basis points for full year 2024.

• The company is positive about mortgage and commercial sectors and expects to grow in these areas.

• Confidence in the market is causing more customer activity, and this trend is expected to continue throughout the year.

• The company has factored in some share price movement and Basel III.1 implementation in their capital plans.

• The dividends will follow a formulaic policy around a 40% payout, with the prior year's dividends being 17p per share.

• Aims of achieving a RoTE target of greater than 13% in 2026 were expressed.

More details: NatWest IR

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