NatWest has raised its annual outlook after posting stronger-than-expected profits for the three months ending in September, driven by increased lending and a focus on efficiency.
The state-backed bank upgraded its income forecast to £14.4 billion from £14 billion and boosted its return on tangible equity target from 14% to 15%, following a better-than-anticipated third quarter.
Operating profits for the period reached £1.7 billion, marking a 25.7% increase compared to the same quarter last year and surpassing forecasts of under £1.5 billion. Net income also exceeded expectations, coming in at £1.2 billion versus estimates of less than £1 billion.
Chief Executive Paul Thwaite highlighted the strong performance, stating: “NatWest Group’s success is rooted in the support we provide to our 19 million customers across the UK. By sticking to our strategy, we are growing and simplifying our bank while managing our capital more efficiently.”
He added, “As the UK’s largest business bank and a major provider to millions of households, NatWest Group is instrumental in driving economic growth across the country. Throughout the third quarter of 2024, we have expanded our lending, supporting customers in buying or remortgaging their homes and in starting or growing their businesses.”
Thwaite noted that with rising customer activity, low default rates, and optimism among businesses and consumers, NatWest is well-positioned to achieve further success for its customers and shareholders in the coming months and years.
