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NatWest Q3 profit triples despite money laundering charge -Breaking

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© Reuters. FILEPHOTO: After the coronavirus epidemic (COVID-19), London and Britain’s May 1st 2020, people maintain their social distance while queuing outside Natwest banks in Wimbledon. REUTERS/Hannah McKay

LONDON, (Reuters) – NatWest’s third quarter profits tripled Friday, despite the fact that it had set aside cash in preparation for a possible fine for money laundering as Britain’s resurgent economies lifted its finances.

A pre-tax profit of 1.1 Billion Pounds ($1.52 Billio) was reported by state-backed lender. It is better than 677 MILLION pounds analyst estimates and higher than 355 Million pounds in a year.

Bank took 294 million pounds litigation and conduct charges for the quarter. It also includes provisions for an anticipated fine, after it pleaded guilty earlier in the month to not preventing the laundering of almost 400 million pounds.

NatWest’s Profit Rise Despite the Court Case Provision follows a series of impressive quarterly earnings by rivals Barclays (LON.), HSBC, and Lloyds (LON.) This month’s profits were boosted by the economic recovery following pandemic lockdowns.

All banks saw an increase in their liquidity due to the availability of bad loan reserves. NatWest was the first to unlock 242million pounds.

NatWest was Britain’s largest business bank and the first to admit criminal offenses under a money laundering law in 2007.

According to the Financial Conduct Authority, NatWest was accused of failing to detect suspicious activity from a client who had deposited approximately 365million pounds over five years in its accounts. Of this, 264 million were in cash.

The lawyer representing the FCA told Westminster Magistrates’ Court this month that the bank could be subject to a possible penalty of approximately 340 million pounds in accordance with sentencing guidelines.

At a December sentencing, a judge will determine the level of the fine.

NatWest stated it is deeply sorry for failing to detect the money laundering, and has made 700 million dollars in five-year investments in prevention systems.

($1 = 0.7253 pounds)

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