LONDON (Reuters) – British taxpayer-backed bank NatWest is set to raise its 2022 bonus pool for staff 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.
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.
It would be NatWest’s second straight annual bonus pool increase, 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)
