NatWest Group has announced a significant increase in its earnings, with a growth of a third, attributed to a rise in mortgage lending in recent months. The banking group reported an operating pre-tax profit of £1.7 billion between July and September, which is nearly a third higher than the same period last year and surpassing analysts’ expectations.
Joining the likes of Lloyds and Barclays, NatWest’s higher-than-anticipated profits reflect a positive trend in the banking sector as interest rates begin to decrease. The bank’s lending portfolio expanded by over £8 billion in the third quarter, with the acquisition of Metro Bank contributing to strengthening its mortgage book. Additionally, customers’ deposits with the bank increased by £2.2 billion, largely due to a surge in savings deposits.
Paul Thwaite, the bank’s Chief Executive, expressed confidence in future prospects, citing increased customer activity, low default rates, and growing optimism among businesses and consumers. Despite posting impressive figures, NatWest also acknowledged a £24 million impact on costs related to the planned sale of shares to retail investors, a move that was curtailed after a change in government earlier this year.
The bank reported a reduction of nearly £150 million in business expenses compared to the previous quarter, as part of an ongoing effort to streamline its operations under Mr. Thwaite’s leadership. Overall, NatWest’s strong performance signals resilience and adaptability in a changing economic landscape, positioning the bank favourably for future growth and success.