NatWest has reported a sharp rise in quarterly profits, delivering a boost to investors and taxpayers alike as the UK government prepares to fully exit its stake in the lender more than 15 years after its financial crisis bailout.
The FTSE 100 bank, formerly Royal Bank of Scotland Group, said pre-tax profits rose 36% year-on-year to £1.8 billion in the three months to the end of March — comfortably ahead of analysts’ forecasts of £1.6 billion.
The bank also raised expectations for its full-year performance, predicting that revenues and return on tangible equity would be at the upper end of previous guidance. Lending and deposits both increased during the quarter, helping to drive the strong results.
Chief executive Paul Thwaite said the bank had “enjoyed a strong quarter” and highlighted customer resilience in the face of growing global uncertainty, noting that NatWest had seen “good levels of activity” across its operations.
The results came just a day after a stock exchange filing revealed the government’s stake in NatWest had dropped to 1.98%, edging the lender closer to full reprivatisation. The state originally held an 85% stake in the group after its £45.5 billion bailout during the 2007–09 financial crisis — one of the largest rescues in British corporate history.
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