Overview

• NatWest posted a £1.8 billion pre-tax profit in Q1 2025, a 36% year-on-year increase and £200 million above analyst expectations.
• The UK government reduced its stake in NatWest to 1.98%, signaling the bank's imminent return to full private ownership after its 2008 bailout.
• Total income rose by 3.8% to £4 billion, driven by a £3.4 billion surge in net loans as borrowers rushed to secure mortgages before stamp duty changes.
• Net interest margin increased to 2.27%, alongside a £100 million rise in credit loss provisions, reflecting economic uncertainty and geopolitical tensions.
• NatWest upgraded its 2025 guidance, forecasting income and return on tangible equity at the upper ends of its previously announced ranges.