NATIONAL Westminster Bank, which owns Ulster Bank plans to spend up to £450 million buying back its shares but has reported a sharp fall in first half pre tax profits, affected by one off items.
NatWest promptly completed the buy back at 626p a share, slightly below the prevailing stock market price. Chief executive, Mr Derek Wanless, said the buy back did not rule out further acquisitions. He said the bank wanted to expand more to take up opportunities in the long term savings market but did not see an acquisition as "absolutely vital".
The bank reported pre tax profits of £879 million before exceptional items, up from £714 million previously. But it took heavy provisions related to restructuring which sliced its half year profits by 60 per cent to £302 million.
Some £186 million went in restructuring its retail banking unit, NatWest UK, and there was a £20 million charge to integrate the operations of Gartmore, a fund management group it bought for £472 million in February.
NatWest also reported a £690 million loss related to goodwill written off on the sale of its US unit Natwest Bancorp.
