Proactive Investors - NatWest Group PLC (LON:NWG) saw a 47% year-on-year decline in mortgage lending in the first quarter of 2024, with total lending down from £9.9 billion to £5.2 billion.
Net interest margins fell from 2.25% in the same period last year to 2.05%, while lower deposit balances additionally caused a fall in net interest income from £2.9 billion to £2.65 billion.
Profit attributable to shareholders fell 28% to £918 million and return on tangible equity (RoTE) dipped 560 basis points to 14.2%.
NatWest blamed “increased mortgage margin pressure” for the 10% year-on-year fall in total income.
The CET1 capital ratio matched expectations 13.5%.
Retail Banking saw a 7.1% reduction in headcount, contributing to lower operating expenses in some areas despite overall increases in expenses due to severance costs and the Bank of England Levy.
As part of an ongoing share buyback programme, NatWest repurchased and cancelled £42.4 million of shares on 31 March.
NatWest maintained its full-year outlook except for group operating costs, which are expected to be £100 million higher than in 2023 due to an increase in bank levies.