Natwest has put aside £300m in legal fees following their money-laundering scandal but still managed to triple profits from a year ago.
The Financial Conduct Authority found that Natwest had failed to monitor money-laundering activities taking place in the bank. Natwest revealed the legal costs when announcing third quarter results.
Natwest recorded operating profit of £1.07 billion in the third quarter, compared to £355 million in the same period a year ago.
“It will be little consolation to chief executive Alison Rose but the fact that investors can find a £1 billion quarterly profit disappointing shows how far NatWest has come in its turnaround plan,” said AJ Bell investment director Russ Mould.
“This is only the seventh quarter in the last five years when the bank has earned at least £1 billion, its balance sheet looks strong relative to regulatory requirements and NatWest felt able to reverse another £242 million of the loan loss provisions on its books as borrowers emerge from the pandemic and lockdowns in better shape than anticipated last year.
The bank posted strong results and tripled pre-tax profits, jumping from £355m to £1.1bn in the three months to September.
“Although we are seeing challenges in the economy and for our customers – especially around supply chains and the cost of living – a number of key indicators remain positive; growth is good, unemployment is low and there are limited signs of default across our book,” said Alison Rose, chief executive of NatWest.
“We have a vital role to play in helping the 19 million people, families and businesses we serve in communities throughout the UK to thrive. Because when they thrive, so do we.”