NatWest reports 30% jump in profits to £1.7bn as mortgage lending grows

NatWest Group has become the third major high street bank to report earnings that have exceeded expectations after saying it provided more mortgages in recent months.

The banking giant brought in pre-tax profit of £1.7bn for the July to September quarter, nearly a third higher than last year's £1.3bn during the same period and surpassing analysts' predictions, who had anticipated profits around the £1.5bn mark. NatWest joins the ranks of Lloyds and Barclays, who have also unveiled profits topping analyst forecasts this week, further signalling the banking sector’s recovery amid decreasing interest rates.

NatWest disclosed lending growth exceeding £8bn throughout the third quarter, saying the Metro Bank acquisition has increased its mortgage portfolio. Additionally, customer deposits in the bank swelled by £2.2bn, thanks to an uptick in savings.

Paul Thwaite, NatWest's chief executive, said: "With customer activity increasing, defaults remaining low and optimism amongst businesses and consumers, we are well placed to succeed with our customers and for our shareholders in the months and years ahead."

Meanwhile, the lender said its business expenses were nearly £150 million lower than the previous three-month period, with Mr Thwaite continuing to oversee a simplification of the bank’s structure.

Nevertheless, NatWest revealed that it took a £24 million hit to costs in relation to the planned sale of its shares to retail investors.

The bank had been gearing up for the share sale, including through an advertising campaign, which was proposed by the previous Conservative government but was abandoned when Labour clinched victory in the earlier this year.