HIGHER interest rates have helped NatWest Group make its biggest annual profit since 2007 in what banking reform campaigners have called an “enormous missed opportunity” by the Tories.

The banking group, which also includes Royal Bank of Scotland, Coutts and Ulster Bank, unveiled an operating pre-tax profit of £6.2 billion, beating the £6bn analysts had predicted and a fifth higher than 2022.

Profits were boosted by an increased income of £14.3bn – a tenth higher year-on-year – underpinned by raised interest rates.

NatWest is preparing to sell its shares to ordinary investors as part of a retail offer announced by Chancellor Jeremy Hunt last year.

The government currently still holds about a 35 per cent stake in the bank.

Positive Money co-executive director Fran Boait said: “NatWest represents an enormous missed opportunity by this government.

“Continuing to sell off the public’s shares for a huge loss when the bank is finally posting stronger results perfectly illustrates the short-termism that has come to define our government.

“The government could also have used its majority stake to ensure NatWest passes higher interest rates onto depositors, which would’ve pressured other banks to do the same.”