British bank NatWest swings to a 2nd-quarter loss of $1.7 billion as income tumbles and impairment charges soar

RBS

• NatWest posted sharply lower profits last quarter as less income and a hefty impairment charge weighed on its business.
• The British bank's total income tumbled 34% year-on-year to £2.7 billion ($3.5 billion) and its impairment losses soared to over £2 billion, meaning it swung from a pre-tax profit of £1.7 billion ($2.2 billion) to a £1.3 billion ($1.7 billion) loss.
• "Our performance in the first half of the year has been significantly impacted by the challenges and uncertainty our economy continues to face as a result of Covid-19," CEO Alison Rose said in the earnings release.
• NatWest's net interest margin fell and its loan impairment rate soared, but it also shored up its finances, increasing both its liquidity coverage ratio and common equity tier one (CET1) ratio.
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NatWest suffered a sharp slump in second-quarter profits as pandemic-related lockdowns and travel restrictions weighed on business activity and consumer spending. The British bank — formerly known as RBS — also shored up its finances in case the crisis worsens.

"Our performance in the first half of the year has been significantly impacted by the challenges and uncertainty our economy continues to face as a result of Covid-19," CEO Alison Rose said in the earnings release.

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