NatWest Ups Profit, Payouts After Privatization

NatWest has announced a total £1.5 billion shareholder payout—comprising a 9.5p per share interim dividend and a £750 million share buyback—after its first quarter as a fully privatized bank following the UK government's divestment. The bank reported a second-quarter operating profit before tax of £1.77 billion and an 18% increase in first-half operating profits to £3.6 billion, helped by acquiring Sainsbury’s Bank and attracting 1.1 million new customers. NatWest raised its 2025 income guidance to over £16 billion and its return on tangible equity target to above 16.5%, citing loan growth and digital efficiency gains. Operating expenses fell and customer deposits rose, supported by new partnerships with OpenAI, AWS, and Accenture. Despite strong results, the UK government’s exit from NatWest resulted in a £10 billion loss for taxpayers. CEO Paul Thwaite highlighted further disciplined growth and a commitment to supporting the UK economy.