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NatWest Group PLC on Friday flagged an improved full-year outlook and ‘good levels of activity’ after first quarter earnings beat forecasts. Chief Executive, Paul Thwaite, commented: ‘Our strong first quarter performance demonstrates the positive momentum in our business as we deliver against clear strategic priorities, and we now expect to be at the upper end of our income and returns guidance for 2025. This performance is underpinned by continued growth across our three businesses.’ In response, shares in NatWest rose 1.4% to 482.40 pence each in London. They had earlier traded as high as 497.10p. Operating pretax profit jumped 36% to £1.81 billion from £1.33 billion, beating company compiled consensus of £1.57 billion. Total income rose 15% to £3.98 billion from £3.48 billion ahead of £3.84 billion consensus. Within this, net interest income rose 14% to £3.03 billion from £2.65 billion, ahead of £2.99 billion consensus. NatWest said this principally reflected deposit margin expansion, balance growth and increased trading income. In the quarter, the net interest margin improved to 2.27% from 2.05% a year ago. NatWest said net loans to customers excluding central items increased by 0.9% to £371.9 billion quarter-on-quarter while customer deposits excluding central items grew 0.5% to £433.4 billion from the prior quarter. Impairment losses doubled to £189 million from £93 million a year ago but NatWest said levels of default are ‘stable’. Return on tangible equity rose to 18.5% from 14.2% while the CET1 capital ratio rose to 13.8% from 13.5%. For 2025, NatWest expects to achieve a return on tangible equity at the upper end of its previously guided range of 15% to 16%. Income excluding notable items is projected to be at the upper end of its previously guided range of £15.2 billion to £15.7 billion. CEO Thwaite said consumers remain ‘resilient’ in the face of increased global economic, noting NatWest saw ‘good levels of activity’ through the 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. At a time when there is a clear intent to deliver economic growth, NatWest Group is able to play an important role, shaping our future as a vital and trusted partner to our customers and to the UK itself,’ he said. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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