24th Oct 2025 08:15
(Alliance News) - 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 GBP2.18 billion, a rise of 30% from GBP1.67 billion a year prior. Total income improved 16% to GBP4.33 billion from GBP3.74 billion.
Third quarter total income beat the company-compiled consensus of GBP4.10 billion, while pretax profit was ahead of a GBP1.83 billion forecast.
Net interest income alone shot up 13% on-year to GBP3.27 billion, while non-interest income surged 26% to GBP1.06 billion.
Total income excluding notable items amounted to GBP4.17 billion, rising 10% from GBP3.77 billion. This topped consensus of GBP4.10 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 GBP16.3 billion for 2025, its expectation raised from above GBP16.0 billion previously. Income excluding notable items was GBP14.6 billion in 2024.
NatWest had originally expected income excluding notable items in the range of GBP15.2 billion and GBP15.7 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 GBP16.0 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 GBP56.0 billion from GBP51.8 billion, "assisted by strong client net inflows", as well as positive market movements to the tune of GBP3.0 billion.
Retail Banking total income rose 14% on-year in the third quarter to GBP1.66 billion. Private Banking & Wealth Management total income was 12% higher at GBP284 million. Commercial & Institutional total income rose by 6.6% on-year to GBP2.21 billion from GBP2.07 billion.
By Eric Cunha, Alliance News news editor
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