NatWest RBS back in profit and restores dividend
Alison Rose: ‘good operating performances’
NatWest, parent of Royal Bank of Scotland, has announced a return to profitability and a restoration of its dividend.
The bank posted an operating profit before tax of £2.5bn (£1.6bn in Q2) against a loss of £770m at H1 2020.
Attributable profit came in at £1.8bn (£1.2bn in Q2) against a loss of £705m in the first half last year.
The bank declared an interim dividend of 3p per share and a share buyback of up to £750m.
There is a release of an impairment charge of £707m (£605m in Q2).
Chief executive, Alison Rose, said: “These results have been driven by good operating performances across the Group, underpinned by a robust loan book and a strong capital position.
“Defaults remain low and, given the improved outlook, we have released a further £0.6 billion of impairment provisions in the quarter. While we see the potential for a more rapid recovery, we will continue to take an appropriate and conservative approach as the government schemes wind down and the economy reopens.
“As a result of our strong and resilient performance, coupled with our capital strength and cautiously optimistic outlook, we are announcing an interim dividend of 3p per share and share buyback of up to £750m.