Daily Express

Nat West profits rise by 40% as borrowing demand grows

- By Graham Hiscott

NATWEST’s profits jumped 40 per cent as the country emerged from the worst of the pandemic – but it sounded a note of caution as the household bills crunch bites.

The bank made an operating profit of more than £1.2billion in the first quarter – up £885million on a year earlier – boosted by strong demand for borrowing. Bosses revealed they referred 2,100 customers to Citizens Advice for help in the last year but were not seeing a leap in those needing assistance.

NatWest chief executive Alison Rose said: “We are very aware of the challenges and concerns the cost-ofliving crisis is causing for many of our customers up and down the country.”

Unlike competitor­s that reported results earlier in the week, the bank did not set aside new money for defaulted loans. Instead, it released £38million previously set aside as a contingenc­y.

And Ms Rose believes many households built a financial cushion during the depths of the pandemic. She revealed: “We are not seeing any signs of distress or an increase in customer calls to the financial support team, no rise in forbearanc­e, and credit card and overdraft limits remain below 2019 levels.

“That said, many families have never had to operate in an inflationa­ry environmen­t before so there is a degree of anxiety.” NatWest stuck by its economic forecasts before updates later this year. But it could be exposed to any slowdown as one of Britain’s largest lenders and biggest business bank.

Yesterday’s results were the first since the Government’s stake in the group – which includes the Royal Bank of Scotland – fell below 50 per cent for the first time. Taxpayers bailed it out at the height of the 2008 banking crisis.

John Moore, senior investment manager at Brewin Dolphin, said: “NatWest has delivered a strong set of results, with profits ahead of expectatio­ns.

The bank continues to transform, with a potential strategic acquisitio­n in the offing.”

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OPTIMISTIC: Strong results

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