NatWest faces £140m hit from Iran war as UK growth slows and inflation rises

NatWest has reported a 12% year-on-year increase in operating profits to £2bn in the first three months of the year, up from £1.8bn in the same period last year. Photograph: Bloomberg/Getty

NatWest said the economic fallout from the conflict in the Middle East could cost it £140m amid slowing growth and rising inflation even as it reported profits ahead of expectations.

Overall, the FTSE 100 lender booked a £283m impairment charge and said that almost half of that was because of a reassessment of its economic forecast to “reflect increased geopolitical risk and weaker equity markets”.