Banking group's stock hits two-year low
Shares in NatWest Group fell by almost 10% as it cut its margin guidance on the same day it published an independent report into the closure of Nigel Farage’s bank accounts.
The stock was down by 9.3% at 186.7p just before 10am, recovering from an 18.2% plunge earlier on Friday morning. The giant banking group’s stock hit a two-year low after missing profit targets.
NatWest reported a bank net interest margin (NIM) of 2.94% – 19 basis points lower than the previous quarter. Bank NIM was 3.11% for the year to date.
Still, the bank delivered an operating profit before tax of £1.33 billion for the three months to September 30, short of the consensus estimate of £1.4 billion, but up from £1.09 billion posted in the previous year.
We’ve released our Q3 2023 Results.
— NatWest Group (@NatWestGroup) October 27, 2023
Find out more here: #NatWestGroupResults https://t.co/qwygWykm00 pic.twitter.com/XaqxpePXya
“Today’s Q3 2023 results show that NatWest is a strong bank which is performing well, generating sustainable profits and returns,” Paul Thwaite (pictured), chief executive at NatWest Group, commented. “This performance is built on the foundations of strong customer franchises and a robust balance sheet with high levels of liquidity and a well-diversified loan book.
“As a result, credit losses and impairments remain low and we are ready and able to stand by our customers and businesses through the current economic uncertainty.”
Thwaite took over at NatWest a few months ago, replacing Alison Rose, who was forced to resign in July as she became involved in a scandal over the closure of Farage’s bank accounts with NatWest-owned private bank Coutts.
On Wednesday, the UK Information Commissioner’s Office (ICO) ruled that Rose violated Farage’s data privacy rights by inappropriately and inaccurately sharing the latter’s personal data.
An independent review – conducted by law firm Travers Smith and commissioned by the NatWest Group – was also released this morning and found that disclosures made by the former executive “probably amounted to a personal data breach” and that the bank committed “a number of serious failings” in the treatment of Farage.
“This report sets out a number of serious failings in the treatment of Mr. Farage,” commented Howard Davies, NatWest Group chairman. “Although Travers Smith confirm the lawful basis for the exit decision, the findings set out clear shortcomings in how it was reached, as well as failures in how we communicated with him and in relation to client confidentiality.”
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