NatWest Group has announced a striking 26% rise in pre-tax profits for the third quarter, reaching £1.7 billion.
This growth is significantly attributed to an increase in lending activities and a favourable net interest margin, propelling shares upward by nearly 5%.
In the latest financial update, NatWest’s operating pre-tax profit surged to £1.7 billion, up from £1.3 billion in the same period last year. This robust performance is predominantly attributed to its enhanced lending operations and a better net interest margin.
Operating expenses showed a decline of £144 million compared to the previous quarter. However, they were £38 million higher than the same quarter in 2023 when discounting retail share offering charges.
The stability in defaults indicates a well-managed loan portfolio, positioning NatWest confidently within its market.
This growth was achieved across all business segments, reflecting NatWest’s strategic focus on expanding its market share and customer base.
Operating costs are expected to remain stable for the year, barring litigation and conduct-related expenses. However, some cost increases are anticipated due to bank levies and a retail share offering.
Matt Britzman, Senior Equity Analyst at Hargreaves Lansdown, noted that NatWest exceeded expectations without the influence of impairments, contrasting with trends seen in other major UK banks.
Investor sentiment was positive, reflected in NatWest’s shares jumping nearly 5% at market opening.
NatWest’s strong third-quarter results highlight effective management and strategic growth in lending and deposits.
This performance underscores its capability to adapt and thrive within a competitive banking environment.
