Yahoo Finance NatWest chief Alison Rose handed bank's first bonus since 2008 bailout
NatWest's chief executive has received a bonus for the first time since its 2008 bailout after profits soared on the back of rising interest rates.
The FTSE 100 banking giant handed Dame Alison Rose a £5.2m payout after pre-tax profits surged by a third to £5.1bn last year, its largest annual profit since the financial crisis.
The lender, which is still 45pc taxpayer-owned, was boosted by the Bank of England’s decision to raise rates but lenders have come under fire for failing to fully pass on the rate rises to savers.
Yet rate rises have also increased pressure on borrowers, with NatWest setting aside nearly £340m last year to cover potential bad loans.
Dame Alison said: “Despite not yet seeing significant signs of financial distress among our customers, we are acutely aware that many people and businesses are struggling right now and that many more are worried about what the future holds.”
Shares in the bank fell by nearly a tenth in early trading after it warned that a boost from rising interest rates may already have peaked and its revenue forecast for 2023 fell below analyst estimates.
On the back of the strong 2022 performance, Dame Alison was paid a salary of £2.4m and a bonus of £643,000, with the rest of her remuneration made up of share-based awards under a long-term incentive plan.
NatWest also ramped up the bonus pool for its bankers by nearly £70m in 2022 to a total of £367.5m.
The lender said it handed back £2.6bn to the Government over 2022 as it moves closer to being private again.
Earlier this month, MPs summoned bosses of Britain's four biggest banks and accused them of being too slow to pass on the Bank of England's rate rises to savers.
The Treasury Select Committee also quizzed bosses on why mortgage rates were rising more rapidly than the return offered to savers when the base rate went up.
NatWest was rescued by a £45.5bn government bailout during the 2008 financial crisis when it was known as Royal Bank of Scotland.
Analysts at Citi said: “On balance, we expect these results to be met with disappointment on the weaker 2023 outlook.”
