In a notable move for investors, NatWest Group has witnessed its shares surge over 7% as of late Friday morning. This spike follows the bank's announcement of an increased income forecast for the full year of 2024, despite experiencing lower results in the first half of the fiscal year. Furthermore, the banking giant has revealed a strategic acquisition aimed at bolstering its mortgage portfolio by purchasing assets from fellow British lender Metro Bank. On Friday, NatWest disclosed an expectation for income to reach an impressive 14 billion pounds sterling for the year 2024, excluding notable items.
This marks a significant increase from the prior estimate, which ranged between 13 billion pounds and 13.5 billion pounds. Financial results from the first half indicated that total income, also excluding notable items, amounted to 7 billion pounds. Interestingly, although total income for the first half of 2024 reflected a decrease of 5.1% compared to the previous year, the second quarter results showed a rebound, with income up 5.2% from the first quarter of the same year.
Chief Financial Officer Katie Murray provided insights into the group's performance, highlighting low levels of default within their portfolio, evidenced by a net impairment charge of merely 3 basis points of gross customer loans during the first half of the year. The UK-based banking group, however, reported an 8.7% year-over-year drop in interim profit attributable to ordinary shareholders, tallying at 2.10 billion pounds.
Additionally, the net interest income observed a decline during this period, dropping from 5.73 billion pounds to 5.41 billion pounds. In a separate news release issued on the same day, NatWest detailed its agreement to acquire up to 2.5 billion pounds sterling worth of prime UK residential mortgages from Metro Bank, facilitated through its National Westminster Bank division.
This strategic acquisition is anticipated to finalize within the second half of the year, contingent upon regulatory approval. The transaction includes a cash consideration that could reach up to 2.4 billion pounds. CEO Paul Thwait emphasized the strategic significance of this move, stating, "This transaction is a further opportunity to accelerate the growth of our Retail mortgage book within our existing risk appetite, with attractive returns.
It aligns with our strategic priorities and builds on our recent acquisition from Sainsbury's Bank." With these developments, NatWest Group is positioning itself advantageously in the competitive financial landscape, aiming to enhance its market presence and profitability as it navigates through challenging economic conditions..