NatWest Group, the biggest corporate lender in the U.K., has been on a turbulent ride.
Earlier this week, CEO Alison Rose resigned after admitting to discussing sensitive information about Nigel Farage’s bank account, a prominent figure in Brexit and an ally of Donald Trump, with a BBC reporter.
Peter Flavel, CEO of NatWest’s sister bank Coutts, where Farage’s account was held, also stepped down.
But despite the ongoing fallout, NatWest reported a remarkable surge in first-quarter profit on Friday.
Their pre-tax profit for the first half of 2023 reached £3.6 billion ($4.6 billion), surpassing analyst expectations of £3.3 billion and representing a 38% increase from the same period last year.
Additionally, their second-quarter pre-tax profit stood at £1.77 billion ($2.3 billion), marking a 27% year-over-year growth.
Is that the end of NatWest’s crisis?
Despite strong financial results, NatWest’s crisis persists.
Pressure on Howard Davies, the bank’s chairman, increased after Prime Minister Rishi Sunak withheld full support during Thursday’s interviews.
However, Davies asserted on Friday that he will not resign, citing the need to ensure the bank’s stability.
NatWest, acknowledging the difficult time, offered apologies for the uncertainty caused to customers and shareholders.
Davies also confirmed the launch of an independent investigation into the closure of Nigel Farage’s account.
What happened to Nigel Farage’s bank account?
The scandal began when Farage posted on Twitter last month that his account at Coutts, a private bank and wealth manager, was terminated for commercial reasons.
A BBC story in July suggested the closure was due to not meeting the financial threshold of £1 million ($1.3M) to hold an account at Coutts, but Farage claimed it was a “political decision.”
When he requested to view the dossier held on him by Coutts, it revealed his account was terminated because his values didn’t align with the bank.
NatWest’s CEO at the time, Rose, later admitted to providing information to a BBC reporter about the closure.
Paul Thwaite, head of NatWest’s commercial and institutional business, will take over from Rose for an initial 12-month period, as announced by the bank on Wednesday.