Sky News first reported NatWest's planned bonus pool increase. Britain's major banks are expected to report strong profits in results published over the next month, boosted by interest rate rises from the Bank of England. "Amidst a cost of living crisis banks like NatWest should be doing more to pass on gains to their struggling customers, or suffer the same fate as energy companies with a windfall tax levied on excess profits," said Simon Youel of Positive Money, which campaigns for a fair financial system. Bank bosses told lawmakers on the Treasury committee earlier this week they had started to pass on higher rates to depositors and were encouraging people to save, adding that bank profitability was recovering after years of low margins. NatWest's bonus pool increase would be its second straight hike, although the bank said in its 2021 accounts that the pool had been limited to reflect a 265 million pound fine for anti-money laundering failings. The bank, formerly known as Royal Bank of Scotland, remains 45% owned by taxpayers following its state bailout at the height of the 2007-9 financial crisis. NatWest's bonuses are subject to a stricter cap than rivals and the overall pool is typically lower than lenders with large investment banks. ($1 = 0.8265 pounds) (Reporting by Iain Withers; Editing by Kirsten Donovan)
(Adds campaign group comment)
By Iain Withers
LONDON, Feb 10 (Reuters) - British taxpayer-backed bank
NatWest is set to raise its 2022 staff bonus pool to
between 350-400 million pounds ($420-480 million), a source with
knowledge of the matter told Reuters.
The pool would represent an increase of up to around a third
on the 298 million pounds paid out to staff the previous year
and comes amid heightened political scrutiny of whether banks
are doing enough to support customers during Britain's cost of
living crisis.
Pay levels particularly for lower paid workers have also
become a huge social issue in Britain as inflation sits at its
highest levels in decades, with rolling strikes by public sector
staff over wages impacting services across the country.
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