NatWest reports surge in first quarter profits – Daily Business

NatWest, trading as Royal Bank of Scotland north of the border, has posted a surge in first quarter profit and a positive outlook for the rest of the year.

The Gogarburn-based bank reported an attributable profit of £1.3bn from £0.9bn in the corresponding period last year. Operating profit rose 36% to £1.8bn against £1.3bn previously.

The bank announced that the taxpayers’ stake is now below 2% as it heads towards a return to full private ownership in July.

Income during the three-months period rose to £4bn from £3.4bn. There is an impairment charge of £189m.

The acquisition of Edinburgh-based Sainsbury’s Bank completed yesterday and will add about one million customer accounts, £2.5bn of unsecured balances and £2.7bn of deposit balances

Chief executive, Paul Thwaite, said: “Our strong first quarter performance demonstrates the positive momentum in our business as we deliver against clear strategic priorities, and we now expect to be at the upper end of our income and returns guidance for 2025.

“This performance is underpinned by continued growth across our three businesses and the support we provide to over 19 million customers, whether that is buying a home, growing a business or investing their money.

“In the face of increased global economic uncertainty, our customers remain resilient and we saw good levels of activity through Q1 2025. 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.

“At a time when there is a clear intent to deliver economic growth, NatWest Group is able to play an important role, shaping our future as a vital and trusted partner to our customers and to the UK itself.”

Market reaction

John Moore, senior investment manager at RBC Brewin Dolphin, said: “NatWest is in good shape as it edges closer to full private ownership, with profits rising more than one-third in the first quarter of this year.

“Despite the volatility of the last few months and the uncertain economic outlook in the UK, the bank’s guidance is also optimistic.

“NatWest’s recent success has been built on cutting costs, simplicity, and keeping its capital base tight, providing it with a strong balance sheet and solid foundation to build on.

“With some of its peers potentially retreating from the UK, that may open up opportunities for acquisition or other forms of expansion, which would provide further scale while sticking to the three pillars of the bank’s strategy.”