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Insider UK
Insider UK
Business
August Graham & Peter A Walker

NatWest third quarter results exceed expectations

NatWest has upgraded expectations for the year as the bank's mortgage book grew and the chief executive said it is not yet seeing signs of families in added financial distress.

The group's third quarter results statement noted that it expects to make £12.8bn in total income in 2022, up from its previous guidance of £12.5bn. The company made £10.4bn last year.

Total income was £3.23bn in the three months to the end of September. Analysts had expected total income to reach £3.22bn.

Operating profit before tax reached £1.1bn, up from a little under £1bn a year earlier.

It comes as interest rates increased for mortgage holders - and others - up and down the UK.

Yet the bank's retail arm lent £11bn in new mortgages in the three months to the end of September - nearly £3bn higher than this time last year and up 12% compared to the previous quarter.

It comes as the economy has been put under extra strain since the start of the year, with mortgage rates rapidly increasing in a bid by the Bank of England to try to control inflation.

Alison Rose, chief executive of NatWest Group, said: “In a challenging environment, NatWest Group continues to deliver a strong financial performance; supporting our customers, responsibly growing our lending and making significant investments to transform the bank.

“Although we are not yet seeing signs of heightened financial distress, we are very conscious of the growing concerns of our customers and we are closely monitoring any changes to their finances or behaviours.

“The bank’s strong capital and liquidity mean we are able to help those who are likely to need it the most, through support for our community partners, proactive outreach to our customers and targeted lending packages for the most impacted sectors.”

NatWest passed on around 25% to 30% of the increased interest rates to savers since the last quarter of 2021.

Total income reached £3.23bn in the third quarter of the year, up from £2.7bn a year before and just surpassing expectations.

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