NatWest Group PLC (LSE:NWG) shares rose 3% early on Friday after the lender upgraded its forecasts for the year, reporting another quarter of higher income and profit driven by steady lending and strong customer activity.
The bank now expects 2025 income, excluding one-off items, to reach about £16.3 billion, with a return on tangible equity above 18%; both higher than previous guidance.
Chief executive Paul Thwaite said the performance reflected “consistent delivery and capital generation”, supported by stable deposits and continued lending growth across the group’s businesses.
For the three months to the end of September, total income excluding notable items climbed £200 million to £4.2 billion. Profit attributable to shareholders rose to £1.6 billion from £1.2 billion a year earlier, producing a 22.3% return on tangible equity.
Customer lending increased by £4.4 billion during the quarter, while deposits slipped by £1.1 billion, leaving the loan-to-deposit ratio at 88%. Liquidity remained solid, with an average coverage ratio of 148%, well above regulatory requirements.
NatWest said assets under management rose 8.1% to £56 billion, helped by strong client inflows. The cost-to-income ratio improved to 47.8% from 52.8% a year ago, reflecting progress in simplifying operations and cutting expenses.
The bank’s core equity tier one ratio strengthened to 14.2%, and it plans to outline new 2026 guidance and 2028 targets in February.