NatWest Group has reported an attributable profit of £2.3bn for the first six months of this year (H1 2023), which is an increase of 21.6%, compared to an attributable profit of £1.9bn made in the same period of the previous year.

The UK-based financial services provider said that the return on tangible equity in the reported period was 18.2% compared to 13.1% in H1 2022.

In the second quarter ended 30 June 2023, NatWest Group registered an attributable profit of £1.02bn, which is a decrease of 20.3%, compared to £1.3bn in Q1 2023.

The total income of the group in H1 2023 was £7.7bn, an increase of 24.2%, compared to £6.2bn in H1 2022. The increase mainly reflected the impact of growth in lending and yield curve movements, said NatWest Group.

In the reported second quarter of this year, the banking organisation’s total income was £3.85bn, which is 0.6% lesser than the £3.87bn earned in the first quarter.

In the first half of 2023, there was a net impairment charge of £223m, which accounted for approximately 12 basis points of gross customer loans. The main reason for the charge was a raise in post model adjustments due to growing economic uncertainty, even though there was a modelled release of £98m.

Despite the adjustments, defaults have remained steady and at low levels across the portfolio, said the lender.

NatWest Group chief financial officer Katie Murray said: “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.”

Recently, Alison Rose resigned from her position as CEO and director of NatWest Group. Taking her place in both roles is Paul Thwaite, whose appointment is initially set for a period of 12 months and is pending regulatory approval.