Banking giant delivers strong Q3 results amid speculation over sector taxation
NatWest has posted a 30% rise in third-quarter profits, reporting pre-tax operating profit of £2.18 billion for the July to September period, up from £1.67 billion a year earlier.
The robust performance exceeded analyst expectations and drove the bank’s share price to its highest level since 2008, with shares climbing as much as 4% in early trading. NatWest also upgraded its full-year income forecast for 2025 to £16.3 billion, excluding notable items, and now expects a return on tangible equity above 18% for the year.
The results were supported by broad-based loan growth in both mortgages and business lending, alongside an 8.1% increase in assets under management and administration, which reached £56 billion. NatWest’s exposure to private credit remains limited, accounting for less than £5 billion out of total group exposures of £420 billion.
Net lending to customers rose by £1.7 billion, or 0.8%, primarily due to a £1.7 billion (0.9%) increase in mortgage balances.
Following the release of these results, chief executive Paul Thwaite (pictured right) urged the government to consider the consequences of potential tax increases on banks in the upcoming budget.
“I think the government should be thoughtful about signals it sends to investors who are looking at the UK as a long-term home for capital,” Thwaite said.
“You can see in our numbers today, we’re providing a lot of capital to those who are buying houses or moving houses, a lot of capital to businesses. I think it’s important that strong domestic banks are the backbone of the UK, and the best way to use our capital is to support customers.”
Speculation has increased over possible tax measures in the November budget, including additional levies on banks, property, and landlords’ rental income. Other industry leaders have warned against higher taxes, saying it could affect the competitiveness of the UK’s financial services sector.
NatWest, which returned to full private ownership in May after the government sold its remaining stake, has shifted its focus to domestic lending following its restructuring from a global investment bank. The lender’s robust results contrast with some rivals, such as Lloyds, which recently reported a decline in profits due to charges related to the UK motor finance mis-selling investigation.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
