By Sabela Ojea

NatWest Group PLC reported earnings for the fourth quarter of 2020 on Friday. Here's what you need to know:

OPERATING PRETAX PROFIT: NatWest posted a fourth-quarter operating pretax profit of 64 million pounds ($89.4 million) compared with GBP1.55 billion for the fourth quarter of 2019. A compilation of forecasts provided by the bank had expected an operating pretax loss of GBP1 million.

NET PROFIT: The U.K. bank swung to a net loss of GBP109 million compared with a profit of GBP1.41 billion for the year-earlier period. The bank's forecast compilation had anticipated a swing to a loss of GBP90 million for the period.

TOTAL INCOME: Total income fell to GBP2.54 billion from GBP4.23 billion for the same period a year earlier. Total income had been expected to reach GBP2.56 billion.

WHAT WE WATCHED:

--IRISH MARKET EXIT: NatWest has decided to quit the Irish market after reviewing its Ulster Bank business and concluding it wouldn't be able to generate sustainable long-term returns for its shareholders. The exit will take place over the coming years and Northern Ireland won't be affected by this decision.

--COMMON EQUITY TIER 1 RATIO: NatWest ended the year with a common equity Tier 1 ratio--a key measure of balance-sheet strength--of 18.5%, compared with market views of 17.6%. It had a ratio of 16.2% as of Dec. 31, 2019. It also had a negative return on tangible equity of 1.4%.

--IMPAIRMENT LOSSES: The bank's impairment losses for the period weren't as high as the market expected, reaching GBP130 million. The market had forecast losses of GBP485 million.

--DIVIDEND: NatWest's board declared a final dividend of 3 pence a share, the maximum dividend under the Bank of England's guardrails. Dividends were suspended in 2020 due to the coronavirus pandemic. Apart from this, NatWest said it intends to maintain ordinary dividends of around 40% of attributable profit and that it aims to distribute a minimum of GBP800 million per year from 2021 to 2023 through a combination of ordinary and special dividends.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

02-19-21 1010ET