NatWest Group plc Bank on Friday posted slightly better-than-expected interim results and announced a new £750m share buyback.
Operating pre-tax profit for six months to June 30 rose 18% to £3.6bn, beating the £3.46bn average forecast by analysts. The bank, reporting first results since its return to private ownership, lifted its dividend by 58% to 9.5p a share.
NatWest said it now expected to achieve a return on tangible equity of 16.5%, from previous guidance of up to 16%. It also forecast annual income to be above £16bn, up from earlier guidance of £15.2bn - £15.7bn.
Provisions for bad loans came in at £193m, lower than the £226mn analysts expected. Income rose to £7.9bn compared from £7.1bn a year ago as lending and customer numbers rose.
NatWest in May announced its return to full private ownership, after an expensive taxpayer bailout in 2008 when banking industry malfeasance sparked the global financial crash.
Reporting by Frank Prenesti for Sharecast.com