NatWest's first-quarter profit rises 12%, takes Iran war provision
- NatWest also upgraded its income guidance for the year, now saying it expects to be near the top of the 17.2-17.6 billion pound range it previously set out
LONDON: NatWest reported its first quarter profit rose 12% year-on-year on Friday, as the British lender grew lending income while taking a modest charge against potential losses from the economic impact of the Iran war.
The bank said operating profit before tax for January-March came in at 2 billion pounds ($2.72 billion), up from 1.8 billion pounds in the same period a year ago and just above the average of analysts’ forecasts of 1.9 billion pounds.
NatWest also upgraded its income guidance for the year, now saying it expects to be near the top of the 17.2-17.6 billion pound range it previously set out.
The positive earnings upbeat showed the British lender, like its rivals, so far sustaining a recent robust run of profitability, as increased income outweighs concerns about sluggish economic growth and the fallout from the Middle East conflict.
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NatWest did take a 283 million pound impairment charge, of which 140 million pounds came from downgrades to its economic forecasts to recognise the impact of the war in the Middle East.
The provision, which follows accounting rules put in place after the 2008 crisis and aimed at getting banks to recognise a portion of expected loan losses in advance, follows similar charges taken earlier this week by lenders across Europe including Deutsche Bank and Lloyds Banking Group.
NatWest also cut some of its forecasts for Britain’s economic growth.