NatWest swung to a huge profit in the past year as the Government-backed bank released more money it held to one side during the Covid-19 pandemic.
The bank reported an operating pre-tax profit of £4bn in 2021, up from an operating pre-tax loss of £481m a year earlier.
During the year it put £1.3bn back on to its balance sheet from the £3.2bn put aside during the pandemic, including £341m in the final three months of the year.
Shareholders are to receive £3.8bn through a dividend of 7.5p a share, and a £750m share buyback scheme was announced, which removes stock from circulation in an attempt to boost its price.
This includes £1.7bn to the taxpayer, with the Government owning a stake of just under 51%.
The bonus pool for NatWest’s bankers increase from £200m to £298m, it added.
Chief executive Alison Rose said it was a strong performance but sounded a note of caution for the year ahead for customers.
“We are acutely aware of the challenges that many people, families and businesses continue to face up and down the country and are working alongside our customers to provide the support they need – whether that is managing their money better, saving for a house or retirement, or starting or growing a new business – as well as playing a leading role in the transition to net zero,” she said.
It comes after the banking giant this week said it is to close 32 branches, including several RBS sites, as customers switch increasingly to using online services.
The bank said the sites, overwhelmingly in England, would close but did not say when.
The list includes the Royal Bank of Scotland branch in NatWest’s headquarters in Bishopsgate, in the heart of the City of London.
NatWest said 21 of the closures would be NatWest branches, and 11 of them RBS.
Most staff will be moved to other branches, but 12 jobs will be at risk.
All of the branches are in England apart from RBS’s Cardiff City branch. Others include sites in Billericay in Essex, Leeds, Manchester and several in London.
“As with many industries, most of our customers are shifting to mobile and online banking, because it’s faster and easier for people to manage their financial lives,” the bank said.
“We understand and recognise that digital solutions aren’t right for everyone or every situation, and that when we close branches we have to make sure that no-one is left behind.
“We take our responsibility seriously to support the people who face challenges in moving online, so we are investing to provide them with support and alternatives that work for them.”
Many of the UK’s high street bank chains have been shutting sites for years, sparking fears that less technologically savvy customers might struggle to manage their money.
Research carried out by Which? last year for the PA news agency showed that nearly half of bank branches have been lost since 2015, or are scheduled to close.
It counted 4,735 branches that had been earmarked for closure during the period, including 736 in 2021.
It is such a common occurrence that a week ago the Principality Building Society reassured staff and customers that it would keep all of its branches open until at least the end of 2025.
It has 53 branches in Wales and the border areas.
– NatWest closures
Billericay, Essex
Borehamwood, Hertfordshire
Bulwell & Hucknall, Nottinghamshire
Chelsea, Greater London
Gillingham, Kent
Gosforth, Tyne and Wear
Headingley, West Yorkshire
Hull University, East Yorkshire
Leatherhead, Surrey
Leeds Victoria, West Yorkshire
Manchester Spinningfields Square, Greater Manchester
Marlow, Buckinghamshire
Nottingham City, Nottinghamshire
Piccadilly & New Bond Street, Greater London
Ruislip, north-west London
South Woodford, east London
Swanley, Kent
Tavistock Square, central London
Twickenham, west London
Windsor & Eton, Berkshire
Derby Crompton House, Derbyshire
– Royal Bank of Scotland closures
Bishopsgate, City of London
Cardiff City, Wales
Chelmsford, Essex
Cheltenham, Gloucestershire
Harrow, north London
Leeds Park Row, West Yorkshire
Leicester Market Street, Leicestershire
London Child & Co
Nottingham City Office, Nottinghamshire
Southampton High Street, Hampshire
Wilmslow, Cheshire
