London, Friday 17th February 2023
NatWest has today announced that its profits for 2022 were £5.1 billion.
The results are accompanied by news that NatWest has raised its bonus pool for employees to £367 million, following the government’s removal of the cap on bankers’ bonuses late last year.
This, coupled with the source of these profits being largely due to interest rate rises from the Bank of England, has renewed calls from Positive Money for a windfall tax on banks’ excess profits.
They are directing supporters to a petition, calling for Chancellor Jeremy Hunt to introduce this tax, with more bumper profits and bonuses likely to be announced by HSBC and Lloyd’s Bank next week.
Fran Boait, executive director at Positive Money, commented:
“NatWest is using bumper profits to deepen its bonus pool, not to support the public, who bailed it out just 15 years ago, and who are now footing the bill of the higher interest rates boosting those very same profits.
“It is completely unjust that bankers who create only more wealth for the already-rich get pay boosts whilst those who educate, transport and care for the public are forced onto picket lines for fair wages.
“Clearly the government was reckless in its decision to remove the cap on bankers’ bonuses, which needs to be reinstated, and should tax these unmerited profits in order to provide struggling communities with financial support.”
- NatWest’s announcement this morning can be found here: https://investors.natwestgroup.com/results-centre
- The news that NatWest would be increasing its bonus pool above £350-400 million was reported here: https://www.reuters.com/world/uk/natwest-set-raise-bonus-pool-above-350-million-pounds-2023-02-10/
- Banks are set to reap huge excess profits, driven by the Bank of England paying higher interest rates to the tune of tens of billions of pounds a year on risk-free reserves. For more information on the case for a windfall tax on banks, see: http://positivemoney.org/wp-content/uploads/Bank-windfall-tax-briefing-2.pdf
Positive Money campaigns for a money and banking system which supports a fair, democratic and sustainable economy. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of over 65,000 supporters. www.positivemoney.org
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