NatWest Posts 30% Profit Surge on Strong Customer Activity

NatWest Group reported a strong third-quarter performance in 2025, with pre-tax profits surging by around 30% to approximately £2.2 billion, significantly exceeding analyst expectations. The bank's total income rose by about 16%, driven by increased lending, including mortgages, and improved net interest margins which climbed to 2.37%, benefiting from higher interest rates and structural hedging strategies. NatWest also focused on cost efficiencies, reducing its cost-to-income ratio and cutting around 600 roles, helping to boost profitability. As a result of the strong results, NatWest raised its full-year income guidance to around £16.3 billion and increased its target return on tangible equity to above 18%. Shares in NatWest reached their highest levels since the 2008 financial crisis, reflecting investor confidence in the bank's momentum across its retail, private banking, and commercial divisions. CEO Paul Thwaite highlighted healthy customer activity and a resilient balance sheet as key factors underpinning the bank's performance amid a challenging economic backdrop.