By Sabela Ojea

 

NatWest Group PLC on Friday reported earnings for the third quarter of 2020. Here's what you need to know:

 

OPERATING PRETAX PROFIT: The U.K. bank posted an operating pretax profit of 355 million pounds ($459 million) in the third quarter of 2020 compared with a loss of GBP8 million for the same period a year earlier.

NatWest was expected to report an operating pretax loss of GBP75 million for the third quarter of the year, according to its own compilation of estimates.

 

TOTAL INCOME FORECAST: The FTSE-100 bank's total income declined to GBP2.42 billion from GBP2.90 billion in the year-earlier period.

The bank was anticipated to report a total income of GBP2.46 billion, taken from the bank's compilation of forecasts.

 

WHAT WE WATCHED:

 

-IMPAIRMENTS: NatWest booked GBP254 million in impairment losses, when it was expected to book impairment losses of GBP628 million, according to the bank's own compilation of forecasts.

-CAPITAL: The lender's common equity Tier 1 capital ratio--a measure of a bank's financial strength--stood at 18.2%, up from 17.2% as at June 30. It was anticipated at 16.7%.

 

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

 

(END) Dow Jones Newswires

October 30, 2020 10:44 ET (14:44 GMT)

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