Bank benefits from strong customer balances, robust lending, and market activity amid global economic jitters
LONDON — NatWest Group has posted a significant leap in quarterly profits, buoyed by increased customer activity and lending, as the banking giant hailed the resilience of its customer base in the face of mounting global economic uncertainty.
The high street bank, which also includes Royal Bank of Scotland and private bank Coutts under its umbrella, revealed on Friday that it delivered an operating pre-tax profit of £1.8 billion for the first quarter of 2025. This marks a 36% increase on the £1.3 billion earned during the same period last year and comfortably surpasses analysts’ expectations.
Income rose substantially, fuelled by a combination of higher customer balances, greater volumes of mortgage and business lending, and increased trading activity. Deposits swelled by £2.1 billion across current and savings accounts — a notable feat, given the end-of-year tax payment season, which typically leads to significant outflows.
Meanwhile, net lending grew by £3.4 billion, spurred by a surge in mortgage borrowing and business loans. Many homebuyers rushed to complete purchases ahead of the reduction in stamp duty relief from April, contributing to the flurry of lending activity.
Chief executive Paul Thwaite struck an optimistic tone following the results, saying the bank expects to report income at the “upper end” of its full-year guidance. “In the face of increased global economic uncertainty, our customers remain resilient, and we saw good levels of activity through Q1,” he said.
“Our strong balance sheet means we’re well-positioned to help our customers navigate the challenges ahead while continuing to invest in the business and deliver for our shareholders.”
The positive update comes against a backdrop of global market volatility. Recent tariff hikes by the United States have sent tremors through international financial markets and sparked renewed fears over the health of the global economy. NatWest said it remains vigilant and will continue to monitor evolving conditions.
Thwaite noted the bank’s readiness to adapt if circumstances shift. “The broader economic environment remains dynamic,” he said. “We are committed to staying agile in our approach and continuing to support both households and businesses through changing times.”
NatWest’s quarterly performance also takes place amid a historic moment for the group, as the Government’s shareholding dipped below 2% this week. The milestone marks a major step towards the bank’s full return to private ownership — nearly 17 years after it was rescued with a £45 billion taxpayer bailout during the financial crisis of 2008–09.
More Read
The remaining public stake is expected to be sold off entirely by mid-2025, with the Treasury previously indicating plans for a retail share offer as part of the final sell-down. NatWest has said it sees the moment as highly symbolic, reflecting the transformation the bank has undergone since the crisis years.
Shares in NatWest ticked up in early trading on Friday following the release of the results, reflecting investor confidence in the group’s trajectory.
Analysts welcomed the better-than-expected figures. “NatWest has delivered a strong set of numbers, underpinned by good customer activity and prudent risk management,” said one City analyst. “While macroeconomic uncertainty remains a headwind, the bank appears well-capitalised and ready to weather further volatility.”
As the second quarter begins, NatWest’s performance will be closely watched — both for signs of sustained customer resilience and as a bellwether for the broader UK banking sector.
