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NatWest builds on a solid start

As the best performing UK bank share of the past 12-months, investors can only wonder what might have happened if it had changed its name sooner
NatWest builds on a solid start

 

  • The emphasis is all on incremental growth in its home market
  • The return of an interim dividend and a £750m share buyback scheme.

Like all the systemically important UK banks, NatWest (NWG) benefited heavily in its interim results from government action to prevent the economy imploding during the lockdown periods. Loan impairments were a mere 0.38 per cent of the bank's total book, compared with 1.6 per cent this time last year, and resulted in an impairment credit of £605m. This reflected a slowdown towards default that was largely the result of the furlough programme and government loans to businesses. The sense of relative corporate stability allowed the return of an interim dividend and a £750m share buyback scheme.

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