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Highlights
NatWest Group reported a 35.3% increase in profits for Q3, reaching £1.17 billion compared to £866 million the previous year.
The bank raised its full-year income forecasts, now projecting adjusted income of £14.4 billion, up from £14 billion.
Return on tangible equity remains robust at 18.3%, reflecting strong performance despite a slight decline from the previous quarter.
NatWest Group (LSE:NWG) has released a strong performance update for the third quarter of 2024, reporting a significant 35.3% increase in attributable profit, totaling £1.17 billion, up from £866 million in the same period last year. This remarkable growth can be attributed to robust lending and deposit activity, as well as an improvement in the net interest margin, which rose by 8 basis points to 2.18%. Total income for the quarter increased by 7.3%, reaching £3.77 billion.
During the third quarter, NatWest provided net loans to customers, excluding central items, amounting to £363.7 billion, representing a growth of £8.4 billion or 2.4% from the previous quarter. This growth was driven by broad-based demand across retail banking, commercial, and institutional sectors, including the integration of £2.3 billion from the acquisition of the Metro Bank mortgage portfolio. Customer deposits also showed a positive trend, rising by £2.2 billion to £427.4 billion.
Despite a slight decrease in return on tangible equity to 18.3% from 18.5% in the second quarter, this figure marks a significant improvement from 14.7% a year earlier. In light of these positive developments, NatWest has raised its outlook for return on tangible equity, now anticipating a figure above 15%, and adjusting its income forecast to £14.4 billion.
Chief Executive Paul Thwaite emphasized the bank's commitment to supporting customers through increased lending for home purchases, remortgaging, and business development. With customer activity on the rise, low default rates, and growing optimism among businesses and consumers, NatWest is well-positioned for continued success in the months and years ahead.
As the banking landscape evolves, NatWest’s strong performance and proactive approach reflect its focus on delivering value for customers and stakeholders alike. Further updates will provide insights into the ongoing initiatives and strategic developments within the organization.
