RBS owner NatWest on cusp of full private ownership as profits leap 36%: shares rise

Royal Bank of Scotland parent NatWest Group received a share uplift after revealing a jump in profits as the lending giant insisted its customers were “resilient” against global economic uncertainty.

The group, which also incorporates Coutts, reported an operating pre-tax profit of £1.8 billion for the first three months of 2025. The result was 36 per cent higher than the £1.3bn generated this time last year and exceeded the expectations of analysts for the period. Income was boosted by customer balances growing, higher lending and more trading activity.

The amount of money deposited by customers increased by £2.1bn during the quarter, including in current accounts, despite an upsurge in tax payments ahead of the new financial year.

Royal Bank of Scotland forms part of FTSE-100 NatWest Group.

Net loans, meanwhile, jumped by £3.4bn, driven by mortgage and business lending as house buyers rushed to complete deals ahead of stamp duty relief being cut from April.

The latest results come as the bank edges closer to privatisation, with the UK government’s stake falling below 2 per cent on Thursday. NatWest has said it would be a “symbolic moment” when it returns fully to private ownership after being bailed out by the taxpayer during the financial crisis in 2008 and 2009. The Treasury’s shareholding is expected to have been fully sold by the middle of this year.

NatWest’s chief executive Paul Thwaite said the bank was expecting to report income at the “upper end” of its guidance for the full year.

He added: “In the face of increased global economic uncertainty, our customers remain resilient and we saw good levels of activity through [the first quarter]. The strength of our balance sheet means we are well-placed to help our customers navigate any challenges whilst also investing in our business and delivering returns to shareholders.”

The bank said it was monitoring and would react to changing conditions, as US tariffs sent shockwaves through financial markets last month and have raised concerns over the outlook for global economic growth. Interest rates are still expected to ease over the coming months.

John Moore, senior investment manager at wealth firm RBC Brewin Dolphin, said: “NatWest is in good shape as it edges closer to full private ownership, with profits rising more than one-third in the first quarter of this year. Despite the volatility of the last few months and the uncertain economic outlook in the UK, the bank’s guidance is also optimistic.

“NatWest’s recent success has been built on cutting costs, simplicity and keeping its capital base tight, providing it with a strong balance sheet and solid foundation to build on. With some of its peers potentially retreating from the UK, that may open up opportunities for acquisition or other forms of expansion, which would provide further scale while sticking to the three pillars of the bank’s strategy.”

Richard Hunter, head of markets at Interactive Investor, the investment platform, added: “The stars are aligning for NatWest and this latest quarter has added to the growing momentum, prompting another upgrade to its guidance for the full year.”

Shares in the bank were up about 2 per cent in early trading on Friday.

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