NatWest Group has delivered a striking financial performance in the third quarter, with earnings jumping 30% as the banking giant maintains tight control over business costs. The group, which includes Royal Bank of Scotland and Ulster Bank, significantly outperformed market expectations.
The bank reported pre-tax operating profit of £2.2 billion for July to September, leaping from £1.7 billion in the same period last year. This result was well ahead of the £1.8 billion that analysts had expected.
Total income generated by the group surged 16% in the third quarter compared with the previous year. Lending growth contributed to this performance, including increases in mortgage business.
Cost control strategy
NatWest has focused heavily on becoming more efficient by simplifying operations and reducing expenses. The bank's cost-to-income ratio improved as it spends less on running the business as a percentage of income generated.
The efficiency drive resulted in approximately 600 role reductions across the business compared with the previous year. NatWest said these measures are part of longer-term plans to save money through operational improvements.
Chief executive Paul Thwaite said: "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."
Digital transformation focus
Thwaite emphasised the bank's strategic growth focus and economic impact. He said: "With our strategic focus on growth, NatWest Group's impact can be felt right across the economy, as we help people get on the housing ladder, save and invest for the future and grow their businesses. We are also becoming a much simpler bank, with tight control of costs supporting our digital transformation that is enabling us to anticipate and meet the changing needs of customers at pace."
Sources used: "PA Media" Note: This article has been created with Artificial Intelligence (AI).
