NatWest: New permanent CEO announced as bank posts highest yearly profit since financial crash

The board of NatWest said the new boss was an “outstanding candidate and the right person to shape the future of NatWest”.

Meanwhile, the banking group revealed an operating pre-tax profit of £6.2bn over 2023, the highest profit since the £9.9bn made just before the global financial crisis in 2007.

It also came in above analysts’ expectations of a £6bn profit for the year, and was up by a fifth compared with 2022, with the bank benefiting from rising interest rates pushing up the cost of borrowing.

However, NatWest said it had been affected by the more competitive savings rates environment.

Customer deposits, excluding one-off items, fell by £13.8bn during the year, as more customers hunted around for a better deal on their savings.

But it also saw more people moving money into fixed-rate savings accounts.

Its net interest margin – which shows the difference between what a bank pays out for deposits and earns from loans – fell during the final three months of the year, compared with the previous quarter, as it paid out more to savers.

Meanwhile, Mr Thwaite said he was “honoured” to be leading the bank and serving its 19m customers.

He said: “It is an exciting time for our sector and our bank. I am confident we can shape the future of NatWest to deliver its full potential.

“This year we are focused on the things we can control; delivering profitable growth, becoming more efficient, more productive, and simpler to deal with, whilst managing our cost and capital efficiently.”

Mr Thwaite became NatWest’s interim boss in July.

He was previously running the bank’s commercial business.

He stepped in after Dame Alison’s exit in the wake of the so-called debanking row around former Ukip leader Nigel Farage’s account with Coutts, a high-net-worth bank owned by NatWest.

She had worked at the bank for more than 30 years, and NatWest’s chairman Howard Davies described her departure as a “sad moment”, having “dedicated all her working life so far” to the business.

Richard Hunter, Head of Markets at interactive investor, commented “The UK banks’ reporting season is off to a flying start, with NatWest displaying a pleasing mix of lending and income growth, a tight focus on costs and a reward to patient shareholders with a further increase to the dividend.

He added; “In addition, and as trailed, the new chief executive has been confirmed, removing a plank of uncertainty and potentially opening the door to a retail share sale later this year.

"The government holding, which currently stands at 35 per cent, has been an overhang on the shares for some considerable time and its sale would leave the bank free of these shackles.

"The results today should certainly strengthen the investment case and increase the appeal to retail investors, although the level of the discount to the prevailing share price will be critical in attracting new buying interest.”