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.
At the current pace of share sales, the government is expected to be fully divested within the next month, marking a significant milestone for the UK banking sector and the wider economy.
Despite the upbeat tone, Thwaite acknowledged a more volatile global environment. NatWest took a £189 million credit impairment charge in the quarter, though it reported “stable levels of default across the portfolio”.
Rival banks including Barclays, Lloyds, and HSBC have all recently flagged rising credit risks as global trade uncertainty, particularly from President Trump’s new US tariffs, begins to weigh on consumer and business confidence.
Still, NatWest shares responded positively to the earnings update, rising 2% to 486p, as investors welcomed the improved outlook and the bank’s impending return to full private ownership.
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NatWest profits surge 36% as government nears full exit from bank