NatWest Markets Plc Returns to Profit in 2024 Annual Results
Why we think this is good
The financial institution has demonstrated a significant turnaround, moving from a loss in 2023 to a profit of £63 million in 2024. This positive shift is underpinned by a notable increase in income and improved capital ratios. The CET1 ratio strengthened to 18.2%, reflecting enhanced financial resilience. However, the uplift is tempered by rising operating expenses and increased litigation costs, which warrant ongoing monitoring.
Key Points
- Profit of £63 million in 2024, compared to a loss of £98 million in 2023
- Income increased by £168 million to £1,237 million
- CET1 ratio improved to 18.2% from 17.1%
- Total MREL ratio increased to 48.2% from 34.5%
- Liquidity portfolio grew to £21.0 billion from £14.7 billion
- Operating expenses rose to £1,208 million from £1,142 million
- Litigation and conduct costs increased to £102 million from £60 million
Summary
NatWest Markets Plc's 2024 annual results reveal a significant financial turnaround, with the company posting a profit of £63 million compared to a loss of £98 million in 2023. This improvement is driven by a £168 million increase in income to £1,237 million. The company's financial resilience has strengthened, with the CET1 ratio improving to 18.2% from 17.1% and the total MREL ratio rising to 48.2% from 34.5%. The liquidity portfolio has also seen substantial growth, increasing to £21.0 billion from £14.7 billion. However, it's important to note that operating expenses have risen to £1,208 million, up from £1,142 million, with litigation and conduct costs increasing to £102 million from £60 million. While the overall picture is positive, these increased costs and ongoing regulatory challenges require careful management going forward.