NatWest today upped its dividend after its pre-tax profits increased 13 per cent to more than £2.6bn for the first half of 2022.
Higher lending incomes on the back of the Bank of England’s interest rate hike lifted NatWest’s finances and saw the bank raise its full-year revenue forecast to around £12.5bn, up from previous estimates of £11bn.
The uplift came as central bank decisions to lift interest rates boosted banks earnings, by upping their incomes from lending.
The London headquartered bank said it would pay shareholders a special dividend of 16.8p a share on top of an interim dividend of 3.5p per share, in a redistribution, that paired with an earlier share buyback programme, will have seen the firm pay its shareholders £3.3bn in the first half of 2022.
NatWest chief executive Alison Rose said the bank had delivered a “strong performance in the first half of 2022, building on two years of progress against our strategic priorities”.
“We are growing our lending to customers and continuing our £3 billion investment programme to create a simpler and better banking experience whilst delivering sustainable dividends and returns for our shareholders,” Rose said.