NatWest saw an operating loss of £351 million in 2020 after being hit hard by the coronavirus pandemic.

The bank experienced a £753 million attributable loss, which it said reflects an impairment charge of £3.2 billion, with a significant proportion of this relating to potential future loan losses.

NatWest announced that its Irish arm, Ulster Bank, will no longer be able to “generate sustainable long term returns” for its shareholders, and that the bank would begin a phased withdrawal from the Republic of Ireland over the coming years.

NatWest has entered an agreement with Allied Irish Banks for the sale of €4bn (£3.47bn) worth of commercial loans.

Alison Rose, chief executive, NatWest said: “The past year presented some extraordinary challenges for our customers, colleagues and communities. We provided exceptional levels of support to those who needed it, including the approval of over £14 billion of lending under UK Government schemes, demonstrating that we have truly put Our Purpose at the heart of this business. Being purpose-led isn’t just the right thing to do, it has a powerful commercial imperative and is fundamental to building sustainable value in our business.

She added: "Despite reporting a loss for the year, NatWest Group delivered a resilient underlying performance in a challenging operating environment. The bank continued to grow in key areas such as mortgages and commercial lending and our balance sheet remains strong, with one of the highest capital ratios amongst our UK and European peers. We have today announced our intention to pay a final dividend whilst reaffirming our commitment to regular capital returns for shareholders in the future.”

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