NatWest profits surge as bank reels from Nigel Farage de-banking debacle
NatWest has reported a better-than-expected surge in half-year profits as the taxpayer-backed lender reels from the Nigel Farage de-banking debacle.
At the end of a week in which its chief executive Dame Alison Rose was forced to quit for her own role in the row, the bank revealed £3.6bn in pre-tax profits – up from the £2.6bn achieved in the same period last year as its bottom line was boosted by rising interest rates.
It made a further provision of more than £220m for bad loans in the tough economy but said it was currently seeing a low level of arrears and defaults due to higher mortgage and other borrowing costs.
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NatWest updated on its progress following two days of hits to its share price, resulting in £1bn of market value being lost – a reaction to its leadership being left in tatters over the Farage fallout.
Dame Alison stood down after admitting she had been the source of an inaccurate story in the media over the reason why the Brexit politician’s account with Coutts, a division of NatWest, had been closed down.
Coutts chief executive Peter Flavel followed her out of the door on Thursday.
Mr Farage has demanded the resignation of the entire group board, including chairman Sir Howard Davies, who had initially backed Dame Alison’s position before an apparent change of heart amid government anger.
Sir Howard said on Friday in a call with journalists that the “political reaction to retaining Alison Rose as chief executive was such that her position was untenable”.
He also insisted that the group did not shut down accounts “on the basis of people’s legally held political views”.
Lenders have been dragged this week into the Treasury, with regulators also applying pressure on the sector to ensure that anyone has access to banking regardless of their political background or perceived beliefs.
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The row has overshadowed the banking results season with NatWest’s figures for the first half of 2023, like rivals Lloyds and Barclays so far, showing the benefits of rising interest rates as the Bank of England continues its campaign against inflation.
Financial analysts had expected profits closer to £3.3bn for the period for the bank, which announced an interim dividend of 5.5p per share and a share buyback of up to £500m for the current second half of the year.
The net interest margin – a key indicator for financial analysts that shows the spread between what the bank charges borrowers and pays to depositors – stood at 3.2%.
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NatWest boss resigns over Farage row
That was up from the 2.6% achieved in the same period a year ago but was lower in the second quarter – mirroring Lloyds – as banks came under political pressure to pass on better rates to savers.
Sky’s business presenter Ian King said Dame Alison’s stewardship of the bank’s financial performance was evident in the figures – especially in its growth of market share for mortgages.
“This really is a bank that was doing very, very well indeed under Alison Rose, ” he said.
She is set to be officially replaced, on an interim basis, by Paul Thwaite who had headed the group’s commercial and institutional banking division.
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Farage calls on NatWest board ‘to go’
Chief financial officer, Katie Murray, said of the results: “NatWest Group’s strong performance for the first half of the year is underpinned by our robust balance sheet, with a high-quality deposit base, high levels of liquidity and a well-diversified loan book.
“As a result, we are able to continue lending to our customers and delivering sustainable returns and distributions to our shareholders, even in the current uncertain economic environment.”
Although arrears remain low, we know that people, families and businesses are anxious about their finances and many are really struggling.
“We are being proactive in our support for those who are hardest hit, helping to build the financial resilience of the
customers and communities we serve.”
Shares, down 10% over the year to date ahead of Friday’s open, were down fractionally in early trading as analysts pointed to disappointment that the net interest margin was not higher.
Matt Britzman, equity analyst at Hargreaves Lansdown, added: “Perhaps more importantly, full-year guidance has been dragged lower reflecting the ongoing deposit shift to accounts that offer better rates as consumers do all they can to make cash savings go further.”
Barclays will no longer sponsor Latitude, Download or Isle of Wight festivals after musicians and comedians dropped out in protest over the bank’s ties to the Israel-Hamas war.
Live Nation, the concert promoter, told Sky News: “Following discussion with artists, we have agreed with Barclays that they will step back from sponsorship of our festivals.”
Upcoming Live Nation festivals across the UK this summer include Latitude, Download and the Isle of Wight.
Barclays signed a five-year sponsorship deal with Live Nation in 2023. It’s not clear if the suspension will apply to all events up to 2028.
Comedians Joanne McNally, Sophie Duker, Grace Campbell, and Alexandra Haddow all announced they would be boycotting Latitude Festival last week.
Musicians including CMAT, Pillow Queens, Mui Zyu, and Georgia Ruth had also pulled out of the event.
Download Festival, which comes to Donington Park, Leicestershire this weekend, had seen acts including Pest Control, Ithaca, Scowl, Speed and Zulu pull out, also over the festival’s sponsorship.
‘Facilitating genocide’
In a statement on Instagram, Pest Control wrote: “We will not take part in an event whose sponsor profits from facilitating a genocide”.
Meanwhile, Ithaca wrote on X: “Whilst we hate letting anyone down, this moment of solidarity sends a powerful message to the organisers about where the younger generation of bands stand”.
A spokesperson for Barclays told Sky News: “Barclays was asked and has agreed to suspend participation in the remaining Live Nation festivals in 2024”.
Pic: Palestine Action/X
Barclays calls on ‘leaders’ to ‘stand united’ against activist pressure
Palestine Action, a group whose members attacked 20 of the bank branches across England and Scotland last week, has accused Barclays of having financial interests in both Israel’s weapons trade and fossil fuels.
The UK-based Palestine Solidarity Campaign has called for a general boycott of the bank, while the Palestinian-led Boycott, Divestment and Sanctions (BDS) movement has named Barclays as one of their “divestment and exclusion” targets.
Barclays’ statement went on: “The protestors’ agenda is to have Barclays debank defence companies which is a sector we remain committed to as an essential part of keeping this country and our allies safe.
“They have resorted to intimidating our staff, repeated vandalism of our branches and online harassment. The only thing that this small group of activists will achieve is to weaken essential support for cultural events enjoyed by millions.
“It is time that leaders across politics, business, academia and the arts stand united against this.”
Barclays has said while it provides financial services to “public companies that supply defence products to NATO and its allies” it does not directly invest in the firms.
Latitude Festival told Sky News: “Following discussion with artists, we have agreed with Barclays that they will step back from sponsorship of Latitude Festival”.
Comedians pull out en masse
Taskmaster star McNally, who had been set to close the Latitude Festival on Saturday wrote in an Instagram story last week: “I’m getting messages today about me performing at Latitude when it’s being sponsored by Barclays.
“I’m no longer doing Latitude. I was due to close the comedy tent on the Sunday night, but I pulled out last week.
“I’m on the old artwork but I haven’t been listed on the site since I pulled out a week ago.”
Comedian Duker had shared a photo of her at a previous Latitude Festival, and confirmed she would be boycotting the event.
She wrote: “I am committed to minimising my complicity in what I consider to be a pattern of abhorrent, unlawful violence”.
The 34-year-old comedian also said her pro-Palestinian stance “has gained me violent abuse, targeted pile-ons and death threats”.
Fellow comedian Grace Campbell, who is the daughter of Sir Tony Blair’s former spokesman Alastair Campbell, shared Duker’s post in an Instagram story, announcing she was also pulling out of the festival.
Meanwhile, comedian Alexandra Haddow said she too would no longer appear at Latitude, writing on Instagram: “I can’t in good conscience take the fee.”
In a post shared on her Instagram account last week, Irish singer-songwriter CMAT said she would boycott Latitude, writing: “I will not allow my precious work, my music, which I love so much, to get into bed with violence.”
Isle Of Wight Festival. Pic: AP
Campaign groups celebrate victory
In response to the exodus of acts, Barclays previously defended its position, saying it recognised “the profound human suffering” caused by the Israel-Hamas war.
“We provide vital financial services to US, UK, and European public companies that supply defence products to NATO and its allies,” it said in a statement published online.
“Barclays does not directly invest in these companies. The defence sector is fundamental to our national security and the UK government has been clear that supporting defence companies is compatible with ESG considerations.
“Decisions on the implementation of arms embargos to other nations are the job of respective elected governments.”
Bands Boycott Barclays declares victory
In response to Barclays stepping away, campaign group Bands Boycott Barclays, which has been leading the protests, wrote on Instagram: “This is a victory for the Palestinian-led global BDS (Boycott, Divestment, Sanctions) movement.
“As musicians, we were horrified that our music festivals were partnered with Barclays, who are complicit in the genocide in Gaza through investment, loans and underwriting of arms companies supplying the Israeli military.
“Hundreds of artists have taken action this summer to make it clear that this is morally reprehensible, and we are glad we have been heard.
“Our demand to Barclays is simple: divest from the genocide, or face further boycotts. Boycotting Barclays, also Europe’s primary funder of fossil fuels, is the minimum we can do to call for change.”
Last month, more than 100 acts dropped out of The Great Escape Festival in Brighton and Hove due to its ties to Barclays.
Climate campaigners also welcomed the move to suspend the Barclaycard sponsorship.
‘Rotten bank’
Joanna Warrington at Fossil Free London said: “Barclays is a rotten bank: artists, brands, clients, and customers are all abandoning Barclays because of the billions Barclays is ploughing into fossil-fuel companies like Shell and Israeli arms companies dropping bombs on innocent Palestinian children.
“This won’t stop until Barclays stops funding destruction.”
Greenpeace UK’s co-executive director Areeba Hamid said: “This bank is the biggest fossil-fuel funder in Europe, bankrolling oil and gas to the tune of billions of pounds, and has now been linked to arms companies involved in the conflict in Gaza.
“By putting an end to the greenwashing, festival organisers are sending a clear signal to Barclays that it’s time they took responsibility for the destructive industries they fund.”
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Festival sponsors face growing scrutiny
Barclays has confirmed that despite no longer being associated with the festivals, their customers with tickets will not be affected and their tickets will remain valid.
In a similar turn of events, Hay Festival dropped its sponsorship with investment management firm Baillie Gifford last month, after numerous celebrities pulled out due to the company’s links with fossil fuels and businesses linked to the Israeli defence industry.
Activist group Fossil Free Books urged high-profile figures to distance themselves from the literary event, which saw performers including comedian Nish Kumar, singer Charlotte Church and Labour MP Dawn Butler pull out.
While in March many artists refuse to play SXSW Festival in Austin, Texas, due to the event’s connections to the US army and weapons companies linked with the conflict.
Download Festival will be held in Donington Park, Leicestershire this weekend.
The Isle of Wight Festival will be held in Seaclose Park, Newport, between 20 – 23 June, headlined by The Prodigy, Pet Shop Boys and Green Day.
Tens of thousands of people are expected to attend Latitude Festival at Henham Park in Suffolk, held from the 25-29 July.
Two sandwich makers supplying UK supermarkets have recalled products because of an E.coli risk, the Food Standards Agency has said.
It’s a precautionary step a week after the UK Health Security Agency said an outbreak had forced some people into hospital.
Products from Boots, Asda, Tesco, Co-op, Aldi, Sainsbury’s and Amazon are part of the recall, said the Food Standards Agency (FSA).
Asda and Tesco stressed it was a precaution and said shoppers could return the products for a refund.
Greencore and Samworth Brothers Manton Wood are the companies that supplied the products.
It’s understood other manufacturers will issue their own recalls in the coming hours.
The FSA said it had narrowed the source “to a small number of salad leaf products that have been used in sandwiches, wraps, subs and rolls”.
Symptoms include “severe and sometimes bloody diarrhoea, stomach cramps, vomiting and fever”, said Trish Mannes from the UKHSA.
However, some cases can cause serous complications that can lead to kidney failure.
People are being advised to follow NHS.uk guidance if they become unwell.
“Washing your hands with soap and warm water and using disinfectants to clean surfaces will help stop any further spread of infection,” said Ms Mannes.
People who might be infected also shouldn’t prepare food for others and avoid work or school until 48 hours after symptoms stop.
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The UKHSA said cases had nearly doubled in the last week, with a further 98 bringing the total to 211.
Numbers are expected to rise as testing continues for more cases of the Shiga toxin-producing E. coli (STEC).
Based on 160 cases, 42% of people have needed hospital treatment, the UKHSA added.
Last week, it said cases were linked to a “nationally distributed food item” but didn’t give further details.
E.coli bacteria are normally harmless and live in the intestines of humans and animals. However some strains, like STEC, can make people very ill.
Full list of recalled products:
Aldi Chicken Fajita Triple Wrap
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by Amazon BLT Sandwich
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by Amazon Chicken & Bacon Layered Salad
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by Amazon Chicken Salad Sandwich
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by Amazon Ploughman’s Sandwich
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by Amazon Prawn Layered Salad
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Asda Smoky Beans and Cheddar Cheese Wrap
Use by: All dates up to and including 15 June 2024
Asda Chicken Salad (Sandwich)
Use by: All dates up to and including 15 June 2024
Asda Chicken & Bacon Club (Sandwich)
Use by: All dates up to and including 15 June 2024
Asda Brie, Bacon and Chilli Chutney (Sandwich)
Use by: All dates up to and including 15 June 2024
Asda BLT (Sandwich)
Use by: All dates up to and including 16 June 2024
Asda Vegan No Chick’n Caesar Wrap
Use by: All dates up to and including 15 June 2024
Asda Tuna Crunch Sub Roll
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Asda Southern Fried Chicken Wrap
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Asda Southern Fried Chicken Triple Wrap
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Boots BBQ Chicken wrap
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Boots BLT (Sandwich)
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Boots Cheddar Cheese Ploughman’s (Sandwich)
Use by: All dates up to and including 16 June 2024
Boots Chicken & Bacon Caesar Wrap
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Boots Chicken Salad (Sandwich)
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Boots Chicken Triple (Sandwich)
Use by: All dates up to and including 16 June 2024
Boots Delicious Ham & Cheese Ploughman’s (Sandwich)
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Boots Halloumi & Greek Style Salad wrap
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Boots Ham & Egg Club (Sandwich)
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Boots Mixed Triple (Sandwich)
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Boots Southern Fried Chicken Wrap
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Boots Spicy Bean & Cheese Wrap
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Boots Vegan No Chicken Salad (Sandwich)
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Boots Vegan No Duck & Hoisin Wrap
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Boots Veggie Triple (Sandwich)
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Co-op Vegan Gro Onion Bhaji (Sandwich)
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Co-op Mexican Style Bean & Cheese Wrap
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Co-op Ham, Cheese & Pickle (Sandwich)
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Co-op Ham & Cheese Wrap
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Co-op Chicken & Bacon Caesar Wrap
Use by: All dates up to and including 17 June 2024
Co-op Bacon, Lettuce and Tomato (Sandwich)
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Morrisons Chicken Salad (Sandwich)
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Morrisons Chicken Salad PFS (Sandwich)
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Morrisons Gluten Free Chicken Salad (Sandwich)
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Morrisons Gluten Free Sandwich Platter
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OneStop Tuna Crunch Sub
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OneStop Chicken Salad Sandwich
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OneStop Hoisin Duck Wrap
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OneStop Chicken Bacon & Lettuce Sandwich
Use by: All dates up to and including 17 June 2024
Sainsbury’s Kitchen Deli Peri Peri Chicken Wrap
Use by: All dates up to and including 16 June 2024
Sainsbury’s Kitchen Deli BBQ Pulled Pork & Red Leicester Wrap
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Sainsbury’s Kitchen Deli Chicken, Bacon & Avocado Focaccia (Sandwich)
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Sainsbury’s Kitchen Deli Greek Style Wrap
Use by: All dates up to and including 16 June 2024
Sainsbury’s Kitchen Deli Jerk Halloumi Wrap
Use by: All dates up to and including 16 June 2024
Tesco Chicken Salad Sandwich
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Tesco Chicken Salad Sub
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Tesco BBQ Chicken Wrap
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Tesco Hoi Sin Duck Wrap
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Tesco The Chicken Club Sandwich
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Tesco Tuna Crunch Sub
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Tesco Spicy Bean Wrap
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Tesco Chicken Bacon & Lettuce Sandwich
Use by: All dates up to and including 16 June 2024
Tesco Fajita Chicken Wrap
Use by: All dates up to and including 16 June 2024
Tesco Summer Edition Greek Style Chicken Gyros Wrap
Use by: All dates up to and including 16 June 2024
The Gym Kitchen Peri Peri Chicken Chilled Wrap
Use by: All dates up to and including 16 June 2024
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