On 28 July 2022, NatWest Group Plc approved an interim dividend of £180 million or £0.45 per shar, to be declared and payable to NatWest Group plc on 29 July 2022.
Other financial Highlights:
Profit for the period was €11 million compared with €40 million in H1 2021. The total decrease of €29 million was mainly due to an impairment charge of €7 million compared with a release of €4 million in H1 2021, a €7 million decrease in total income from €111 million to €104 million and a tax charge of €7 million compared with a tax credit of €2 million in H1 2021.
Net interest income was a net expense of €1 million compared with a net expense of €4 million in H1 2021.
Non-interest income decreased by €10 million to €105 million compared with €115 million in H1 2021. Net fees and commissions of €94 million (H1 2021 - €129 million) primarily related to transfer pricing income from NWM Plc of €60 million (H1 2021 - €76 million) and syndicate fee income of €34 million (H1 2021 - €52 million). The decrease in transfer pricing income is mainly driven by lower income from revenue share models. Income from trading activities was a gain of €10 million compared with a €2 million loss in H1 2021. Other operating income was a gain of €1 million compared with a loss of €12 million in H1 2021, largely reflecting the loss on disposal of Loans to customers of €12 million in the comparative period.
Operating expenses were €79 million compared with €77 million in H1 2021. Staff costs decreased by €2 million to €39 million in H1 2022, mainly due to restructuring expenses in H1 2021. Premises and equipment costs were €3 million (H1 2021 - €3 million). Administrative expenses increased by €4 million to €35 million, compared with €31 million in H1 2021, primarily driven by higher cost recharges from NatWest Group companies. Depreciation and amortisation was €2 million (H1 2021 - €2 million).
Impairments were a charge of €7 million, compared with a release of €4 million in H1 2021, mainly driven by increases in IFRS 9 Stage 1 and 2 exposures and associated expected credit loss in the period. The €4 million release in H1 2021 was mainly driven by a reduction of an individual significant exposure.
Tax charge was €7 million compared with a tax credit of €2 million in H1 2021, largely driven by the utilisation of deferred tax assets in H1 2022 and the release of a legacy tax provision in the comparative period.
Total assets and total liabilities both increased by €6.2 billion to €27 billion and €24.7 billion respectively as at 30 June 2022, compared with 31 December 2021.
- Cash and balances at central banks decreased by €1.2 billion to €3.9 billion at 30 June 2022, with the full balance placed with the Dutch Central Bank.
- Trading assets increased to €4.6 billion (31 December 2021 - €4.2 billion), driven by an increase in reverse repos of €0.9 billion, partially offset by a decrease in collateral given of €0.5 billion.
- Derivative assets increased to €10.7 billion (31 December 2021 - €7.8 billion) and derivative liabilities increased to €10.2 billion (31 December 2021 - €8.9 billion), primarily reflecting movements in interest rate derivatives and FX derivatives.
- Settlement balance assets and liabilities were €1.9 billion (31 December 2021 - €0.4 billion) and €2.9 billion (31 December 2021 - €0.2 billion) respectively due to higher trading volume around June 2022 month end compared to December 2021 month end.
- Loans to banks - amortised cost increased by €0.3 billion to €0.4 billion at 30 June 2022, largely driven by timing differences in Nostro accounts.
- Loans to customers - amortised cost increased by €0.3 billion to €0.9 billion, reflecting new deals.
- Amounts due from holding company and fellow subsidiaries increased to €3.1 billion compared with €1.4 billion at 31 December 2021, mainly due to increases in deals pending settlement and loans subject to reverse repo agreements.
- Other financial assets increased by €0.3 billion to €1.4 billion, reflecting an increase in treasury bills of €0.4 billion and a decrease in equity shares of €0.1 billion.
- Bank deposits increased by €0.2 billion to €0.2 billion at 30 June 2022.
- Customer deposits increased from €0.9 billion to €1.3 billion, reflecting increased funding requirement.
- Amounts due to holding companies and fellow subsidiaries increased by €0.1 billion to €4.0 billion, mainly driven by an increase in deposits subject to repo agreements of €0.7 billion, partially offset by a decrease in cash collateral of €0.5 billion.
- Trading liabilities increased to €3.7 billion (31 December 2021 - €2.1 billion) primarily reflecting increases in collateral received and repos of €1.5 billion and €0.2 billion respectively.
- Subordinated liabilities decreased by €0.1 billion to €0.5 billion primarily due to valuation changes.
- Other financial liabilities were €1.9 billion (31 December 2021 - €1.9 billion).
- Equity attributable to controlling interests increased by €49 million to €2.3 billion, mainly driven by the profit for the period of €11 million and own credit adjustments of €59 million due to widening of credit spreads. This was partially offset by dividends paid on AT1 capital securities of €7 million and fair value through other comprehensive income movements of €13 million.
