NatWest Group PLC (LSE:NWG) reported stronger first-quarter profits than expected and guided to the upper end of its targted returns for the full year, in its first set of results since the UK government stopped being its largest shareholder
Attributable profit came in at £1.25 billion for the first three months of the year, virtually flat compared to the preceding quarter, but higher than the £1.06 billion consensus forecast. Pre-tax operating profits were £1.81 billion, up 21% and beating the average forecast of £1.56 billion.
This fed through from net interest income that crept 2% higher to £3.03 billion, again higher than the £2.98 billion expected by the market.
Net interest margin (NIM) was 2.27%, up from 2.19% in the fourth quarter of last year, which NatWest principally reflecting deposit margin expansion.
A net impairment charge of £189 million was taken, or 19 basis points of gross customer loans, with levels of default said to be stable.
Chief executive Paul Thwaite said the 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".
The board expects the return on tangible equity to be "at the upper end" of previous guidance for a range of 15-16%, with underlying income also at the upper end of the £15.2-15.7 billion range.