(Alliance News) - NatWest Group PLC on Tuesday warned of a "challenging" environment ahead and said it will begin a search for a new chair as Howard Davies approaches a nine-year tenure.
The Edinburgh, Scotland-based lender's Chair Howard Davies said the bank had built a "robust and resilient" balance sheet during 2022.
At the firm's annual general meeting on Tuesday, he also noted some grounds for "cautious optimism", but warned that the environment will remain challenging for some time to come.
This is due to pressure on household budgets as consumer spending and real income tighten, Davies explained.
He added that the economy is unlikely to grow significantly.
Additionally, Davies gave an update on his own position as chair. He said NatWest says will begin the search for a new chair in the coming months, with handover expected to take place in July next year.
He said: "I am approaching the point where I will have served 8 years on the board, so it is appropriate to initiate the search for my successor as chairman in the coming months. This will allow time for a rigorous search process and an orderly handover, which I expect will take place at some point before I reach nine years tenure in July 2024. That is the maximum recommended in the UK Corporate Governance Code."
In February, NatWest reported that total income was GBP13.16 billion in 2022, 1.0% higher than the GBP13.02 billion expected, and beating 2021's GBP10.43 billion by 26%.
Net interest income grew to GBP9.84 billion, higher than the expected GBP9.83 billion, and 31% up from GBP7.54 billion in 2021.
Shares were down 1.8% at 269.25 pence each on Tuesday morning in London
By Xindi Wei, Alliance News reporter
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Natwest (NWG)