Sir Howard Davies says the bank, which is 39% owned by the taxpayer, has “the support of our main shareholder”.
Image source, AlamyNatWest has reported a sharp rise in first-half profits to £3.6bn following a week of high-profile resignations.
The profits were better than expected and up from £2.6bn a year earlier.
The results come after a torrid few days for the bank, which saw both its chief executive and the boss of its Coutts division quit over the closure of Nigel Farage’s account.
The board of NatWest, which is 39% owned by the taxpayer, remains under pressure over the row.
Its share price has fallen by more than 6% over the week. Sir Howard Davies remains as chair of the group, although former UKIP leader Mr Farage has also called on him to step down.
Hours before Dame Alison Rose announced her resignation as chief executive, Sir Howard said that the board retained “full confidence” in her.
Earlier this week, Economic Secretary to the Treasury Andrew Griffith said there was no need for Sir Howard to resign because NatWest had announced earlier this year that he would step down by the middle of 2024 and a search for his successor was already under way.
The results for the six months to 30 June are the last of Dame Alison’s tenure as chief executive and, according to Victoria Scholar, head of investment at Interactive Investor, profits are better than the £3.3bn expected by analysts.
Dame Alison left the bank earlier this week “by mutual consent” with the board after admitting she had made a mistake in speaking about Mr Farage’s relationship with Coutts, a subsidiary of NatWest which is focused on wealthy clients.
She was followed by Peter Flavel who quit as chief executive of Coutts a day later.
Earlier this month, Mr Farage said that his account at Coutts had been closed and that he had not been given a reason.
The BBC reported that it was closed because he no longer met the wealth threshold for Coutts, citing a source familiar with the matter.
However, Mr Farage later obtained a report from the bank that indicated his political views were also considered.
Ms Scholar told the BBC’s Today programme: “It is a real shame that Alison Rose had to go.
“We know that she was a role model to many and a champion of diversity and inclusion but clearly her discussions [about] Nigel Farage have breached client confidentiality, which is absolutely sacrosanct in the industry and means her role is no longer tenable.”
‘Many struggling’
In its results, NatWest’s chief financial officer, Katie Murray, said that while arrears during the first six months of its financial year “remain low, we know that people, families and businesses are anxious about their finances and many are really struggling”.
“We are being proactive in our support for those who are hardest hit,” she said.
Mortgage arrears of between one and three months rose to £171m from £133m in the same period last year.
Arrears of more than three months rose only slightly, to £238m from £233m last year.