LONDON, Feb 16 Reuters British bank NatWest confirmed Paul Thwaite as its permanent chief executive on Friday and reported forecastbeating profit for 2023, as it gears up for a crunch sale of stateowned stock in the company after a scandalhit year.

The taxpayerbacked lender reported pretax profit of 6.2 billion pounds 7.8 billion for the 12month period, up 20 on the prior year and ahead of a 5.95 billion pounds average of analyst forecasts compiled by the bank.

But it also revised down its outlook for future returns in a move that could concern investors, citing a tough economic environment days after official data showed Britain entered a recession in late 2023.

NatWest shares dropped nearly 3 in early trading, as investors looked past the profit jump to take in the much more modest returns target.

NatWest also announced, as expected, a share buyback of 300 million pounds.

Thwaite becomes CEO on a permanent basis with immediate effect, the bank said. He took on the role on an interim basis last July following the abrupt departure of his predecessor Alison Rose.

The former business banking boss will be tasked with repairing the group39;s reputation after a damaging row with former Brexit Party leader Nigel Farage last year over closure of his accounts that forced out Rose and wealth boss Peter Flavel.

Thwaite will also prepare the ground for a planned retail sale of governmentowned stock in the bank which remains 35 taxpayerowned after its 45.5 billion pound…