NatWest profit leaps by a third as customers ‘resilient’ against uncertainty

NatWest has revealed its profit jumped by more than a third in recent months as the bank said its customers were “resilient” against “increased global economic uncertainty”.

The banking group, which also incorporates Royal Bank of Scotland and Coutts, reported an operating pre-tax profit of £1.8 billion for the first three months of 2025.

This was 36% higher than the £1.3 billion made this time last year and exceeded the expectations of analysts for the quarter.

Income was boosted by customer balances growing, higher lending and more trading activity.

The amount of money deposited by customers increased by £2.1 billion during the quarter, including in current accounts, despite an upsurge in tax payments ahead of the new financial year.

‘Uncertainty’

Net loans surged by £3.4 billion, driven by mortgage and business lending as house buyers rushed to complete deals ahead of stamp duty relief being cut from April in England.

NatWest’s chief executive Paul Thwaite said the bank was expecting to report income at the “upper end” of its guidance for the full year.

“In the face of increased global economic uncertainty, our customers remain resilient and we saw good levels of activity through Q1 (first quarter) 2025,” he said.

“The strength of our balance sheet means we are well-placed to help our customers navigate any challenges whilst also investing in our business and delivering returns to shareholders.”

The bank said it was monitoring and would react to changing conditions, as US tariffs sent shockwaves across the financial markets last month and have raised concerns over the outlook for global economic growth.

‘Symbolic’

The latest results come as the bank edges closer to privatisation, with the Government’s stake falling below 2% on Thursday.

NatWest has said it would be a “symbolic moment” when it returns to private ownership after being bailed out by taxpayers during the financial crisis in 2008 and 2009.

The UK Government’s shareholding is expected to have been fully sold by the middle of the year.