NatWest 2023 profits: Positive Money response

London, 16 February 2024 – Positive Money responds to NatWest’s announcement today that its full year pre-tax profits for 2023 reached £6.2 billion. This is a 20% increase on 2022’s figure of £5.1 billion, and the largest annual profit it’s made since 2007.

Fran Boait, co-executive director at Positive Money, said:

“NatWest represents an enormous missed opportunity by this government.

“Continuing to sell off the public’s shares for a huge loss when the bank is finally posting stronger results perfectly illustrates the short-termism that has come to define our government.

“The government could also have used its majority stake to ensure NatWest passes higher interest rates onto depositors, which would’ve pressured other banks to do the same.”

Notes:

• Natwest’s Q4 profit announcement can be found here: https://investors.natwestgroup.com/results-centre.aspx 

• In November 2023, Unite the Union worked out that the government selling off its remaining stake in NatWest will result in a £10.2 billion loss to taxpayers: https://www.unitetheunion.org/news-events/news/2023/november/uk-taxpayer-facing-loss-of-102-billion-due-to-government-fire-sale-of-natwest-shares 

• Higher interest rates mean that the Bank of England is expected to pay an estimated £75bn of interest on banks’ risk free reserves over 2023 and 2024, with a total of around £150bn due to be paid out between 2022 and 2028. For more information see: http://positivemoney.org/wp-content/uploads/Bank-windfall-tax-briefing-2.pdf 

• Positive Money is petitioning for this windfall to be taxed: https://actionnetwork.org/petitions/tell-hunt-to-tax-the-banks/ 

• Calls for a windfall tax on banks have been echoed by MPs, including Angela Eagle, John McDonnell, Clive Lewis, Diane Abbott and Richard Burgon

• Polling commissioned by Positive Money in September 2023 found the majority of the public supports a windfall tax on banks: https://positivemoney.org/2023/09/uk-public-support-windfall-tax-on-banks-polling-shows/ 

About:

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