NatWest Posts 30% Profit Surge, Raises Guidance

NatWest Group reported roughly a 30% jump in third-quarter pre-tax operating profit to about £2.18–2.20 billion, while total income rose about 16% to roughly £4.3 billion, comfortably beating analyst expectations. The bank raised full-year guidance to around £16.3 billion of total income (ex‑notable items) and increased its target return on tangible equity to above 18% after a third‑quarter RoTE of about 22.3%. Management attributed the outperformance to net interest income expansion from higher‑for‑longer rates and structural hedges, broad‑based loan growth including mortgages, and stronger wealth and payments revenues. Cost reductions and simplification — including about 600 role reductions — improved the cost‑to‑income ratio, and NatWest largely avoided the large mis‑selling car‑finance charges that hit some rivals. Shares rallied to fresh highs, hitting a new 52‑week peak and their strongest levels since 2008 on the results.