You are here: Home - News -

Natwest’s gross mortgage lending rises to £9.1bn in Q1

by:
  • 29/04/2022
  • 0
Natwest’s gross mortgage lending rises to £9.1bn in Q1
Natwest has reported £9.1bn in gross mortgage lending for the first quarter of 2022, a rise on the £8.4bn completed in Q4.

This was mostly flat on the same period last year, when the bank reported £9.6bn in gross mortgage lending. 

The bank also reported volume growth in its mortgage book, which resulted in an 8.6 per cent uplift to its go-forward group income to £1.3bn compared with Q1 last year. The Natwest go-forward group comprises of its subsidiaries excluding Ulster Bank RoI and discontinued operations. 

Go-forward group net lending rose by £6.7bn over the quarter to £359bn, which included £2.6bn of mortgage lending growth. 

Its net interest margin improved by 15 basis points (bps) to 2.46 per cent when compared to Q4 2021, which it said reflected the “beneficial impact” of base rate rises. 

Mortgage completion margins of 66 bps fell from 107 bps quarterly, and were lower than its back book margin of 158 bps. 

Mortgage application margins fell from 67 bps to 44 bps which it said reflected a “steep rise” in swap rates which were not matched by the increases made to new business mortgage rates. 

Overall, Natwest reported profits of £841m, up on £434m in Q4 and £620m in Q1 2021. 

It also confirmed that on 28 April, Natwest received approval from the Irish competition authority (the CCPC), relating to the agreement with Allied Irish Banks (AIB) for the sale of Ulter Bank’s commercial lending portfolio.

It said it had entered “exclusive discussions” with AIB for the sale of Ulster Bank’s performing tracker and linked mortgage portfolio.

Alison Rose (pictured), chief executive, paid tribute to the conflict in Ukraine and rising cost of living, saying: “The world has changed considerably during the last three months. Our thoughts are with everyone affected by the invasion of Ukraine and we are doing all that we can to support them.  

“We are also very aware of the challenges and concerns the cost of living crisis is causing for many of our customers up and down the country. Natwest Group is focused on providing practical help and support for the people, families and businesses we serve.” 

She added: “Despite the challenging environment, I am pleased with our performance as we continue to execute well against our strategy, driving sustainable growth and returns. Income and profits are substantially up, costs are down and we remain well capitalised as we build long-term value and deliver a simpler and better banking experience for our customers.  

“Government ownership also reduced to around 48 per cent in Q1; the first time it has fallen below 50 per cent since the financial crisis. This was an important milestone for our bank and a further demonstration of the progress we are making as we continue to deliver for our customers and shareholders.” 

 

There are 0 Comment(s)

You may also be interested in