LONDON (Reuters) -NatWest reported better than expected profit for the first half of the year on Friday, as Bank of England rate hikes lifted its finances despite runaway inflation threatening to crunch Britain’s economy.
NatWest reported pre-tax profit of 2.6 billion pounds ($3.17 billion) for the six months to June, up slightly from 2.3 billion pounds the previous year and ahead of the 2.2 billion pounds average of analyst forecasts compiled by the bank.
NatWest said it would pay an interim dividend of 3.5 pence and a special dividend with share consolidation of 1.75 billion pounds, equivalent to 16.8 pence per share.
A leap in lending income driven by Bank of England rate hikes boosted the bank, following a pattern seen at rival Lloyds in earnings on Tuesday.
In a sign of confidence, the bank released 46 million pounds of its bad loans provision, rather than taking a new charge.
“We know that continued increases in the cost of living are impacting people, families and businesses across the UK and we have put in place a range of targeted measures to support those who are likely to need it most,” Chief Executive Alison Rose said.
($1 = 0.8204 pounds)
(Reporting by Iain Withers, Editing by Huw Jones)
