NatWest Group PLC

Other income was more mixed. Excluding the positive income effects of foreign exchange recycling gains, it was up 2.5% to £3.3 billion. This is combined with tightly controlled operating expenses, which climbed slowly by 4.6%, excluding litigation and conduct charges. Additionally, there were muted impairments of 15 basis points of average gross lending for the year (below management's guidance of 20-30 basis points for 2023). In summary, the bank's adjusted returns were strong, with an adjusted return on tangible equity of 17.2%. NWG's balance sheet is built from a mix of diffuse retail depositors and a deep, diversified pool of commercial and institutional depositors. In addition, NWG's liquidity portfolio is robust, with its primary liquidity of £148 billion dominated by

...NatWest Group's (NWG) successful franchise, strong earnings outlook, and resilient balance sheet underpin our rating. The group's deep and broad U.K. banking franchise, disciplined strategic execution, and cautious risk appetite translate into significant financial resilience, all of which support our rating. NWG is a strongly performing national champion bank with a robust earnings outlook and cautious risk appetite. The group's business position is strong, anchored by its leading U.K. commercial business, focused U.K. investment banking franchise, and primarily secured retail book. With an expanding prime mortgage book at its core, the group's franchise is on solid strategic footing. Strong 2023 results demonstrate the bank's stable and efficient franchise. NWG's income grew strongly in 2023. Rising rates pushed net interest income to ú11.1 billion, marking a 12% year-on-year increase. However, during the second half of the year, net interest margins contracted. This was due to the migration...

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