NatWest Group has said its profits surged by more than a third to reach £5.1 billion last year, as it revealed its chief executive received a pay packet totalling £5.25 million.
The British banking giant took in more income in 2022 as it ramped up mortgage lending amid a higher interest rate environment.
But boss Dame Alison Rose insisted that the lender has not yet seen significant signs of stress among customers, despite being “acutely aware” that many people and businesses are struggling through the cost-of-living crisis.
Nevertheless, shares in NatWest tumbled by more than 8% on Friday morning as the bank flagged that the economic outlook remains uncertain.
The lender’s operating pre-tax profits reached £5.1 billion over the year, up 34% from £3.8 billion in 2021.
It said total income across its retail banking arm was 27% higher than the previous year as mortgage lending grew and interest rates increased for borrowers.
Dame Alison took home £5.25 million over the year as she received an annual bonus for the first time since the bank’s bailout by the Government during the 2008 financial crisis.
It was the first year of the bank’s new executive pay policy which is more closely linked to performance, and resulted in Dame Alison’s pay package increasing by a 10th.
The payout includes fixed pay and annual bonus along with an estimated value of the long-term incentive awarded under the previous policy – therefore it is a combination of the new and old policy, NatWest explained.
The group’s chief financial officer, Katie Murray, also enjoyed a 4% increase in her yearly compensation, taking home a total pay packet of £3.64 million.
And it ramped up the bonus pool for its bankers by nearly £70 million in 2022, to total £367.5 million.
NatWest said the new pay policy is more competitive and helps it to attract and retain highly talented staff.
But it insisted that it still leaves the bank below the average expected compensation levels paid by other major UK banks.
It comes at a time that pressure has been piled on borrowers who have faced interest rates edging up consistently over the year.
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