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NatWest Group PLC on Friday lifted its annual guidance and reported profit in its third quarter jumped by around a third amid ‘healthy levels of customer activity’. NatWest shares rose 5.0% to 572.85 pence each in London on Friday morning. It was the best performer on the FTSE 100, which was 0.1% higher. The Edinburgh-based lender reported third quarter pretax profit of £2.18 billion, a rise of 30% from £1.67 billion a year prior. Total income improved 16% to £4.33 billion from £3.74 billion. Third quarter total income beat the company-compiled consensus of £4.10 billion, while pretax profit was ahead of a £1.83 billion forecast. Net interest income alone shot up 13% on-year to £3.27 billion, while non-interest income surged 26% to £1.06 billion. Total income excluding notable items amounted to £4.17 billion, rising 10% from £3.77 billion. This topped consensus of £4.10 billion. ‘NatWest Group delivered another strong performance in the third quarter of 2025, underpinned by healthy levels of customer activity and the continued support we provide to them. This is driving positive momentum across our three businesses, with continued lending growth and deposits remaining stable,’ Chief Executive Paul Thwaite commented. ‘As a result of our consistent delivery and capital generation, we have upgraded our income and returns guidance for 2025 and are well placed to support our customers, invest for the future and deliver returns to our shareholders.’ NatWest now expects income excluding notable items to be around £16.3 billion for 2025, its expectation raised from above £16.0 billion previously. Income excluding notable items was £14.6 billion in 2024. NatWest had originally expected income excluding notable items in the range of £15.2 billion and £15.7 billion for 2025, but then in its first quarter results predicted an outcome at the upper end of that guidance. In its half-year numbers, it raised this guidance to ‘greater than £16.0 billion’. In addition, NatWest said Friday it expects to achieve a return on tangible equity above 18.0% for 2025, ahead of its previous outlook of ‘greater than 16.5%’. NatWest’s common equity tier 1 ratio improved to 14.2% as at the end of September, from 13.6% at the end of June. Elsewhere, its third quarter net interest margin grew to 2.37% from 2.18% a year prior. Assets under management and administration improved 8.1% on-quarter to £56.0 billion from £51.8 billion, ‘assisted by strong client net inflows’, as well as positive market movements to the tune of £3.0 billion. Retail Banking total income rose 14% on-year in the third quarter to £1.66 billion. Private Banking & Wealth Management total income was 12% higher at £284 million. Commercial & Institutional total income rose by 6.6% on-year to £2.21 billion from £2.07 billion. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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