NatWest reveals £24m bill for shelved retail share sale as profits fall
NatWest has revealed it spent £24 million on shelved Tory government plans for a retail share sale in the bank as it also reported a 16% fall in half-year earnings.
The lending giant’s bill for the “Tell Sid”-style campaign comes after it was forced to pay for advertising and preparations for the share sale, which had been due to launch in the summer before the surprise July 4 General Election announcement.
The new Labour Government has not yet confirmed whether it plans to rekindle the share sale plans.
Details of the costs were revealed in NatWest’s first half figures showing a 16% fall in pre-tax operating profits to £3 billion for the six months to June 30, although this was better than feared.
NatWest also announced it had agreed to buy around £2.5 billion worth of residential mortgages from Metro Bank for £2.4 billion in cash, which will see it add around 10,000 borrowers to the group.
It follows NatWest’s move to buy the bulk of Sainsbury’s banking business in June, adding around £1.4 billion of unsecured personal loans, £1.1 billion of credit card balances and about £2.6 billion of customer deposits.
Paul Thwaite, chief executive of NatWest, said: “The positive momentum and progress in the first half reflect the ambition across the bank to deliver its full potential.
“Our customers are beginning to feel more confident, with activity increasing and asset quality remaining strong, and we are well-positioned to help unlock growth across the UK through our unrivalled regional network.”
