NatWest hikes income forecast

NATWEST has upgraded expectations for the year as the company’s mortgage book grew and the chief executive said the bank is seeing “no signs” of families in added financial distress.

The bank told shareholders yesterday that it expects to make £12.8billion in total income for the financial year, up from £12.5bn in previous forecasts. It comes as interest rates increased for mortgage holders – and others – up and down the UK.

Yet the company’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% on the previous quarter.

Mortgage rates have rapidly increased since the start of the year in a bid by the Bank of England to try to control inflation.

Boss Alison Rose said that while customers are worried, their pain is not yet showing up in the bank’s books.

“At a time of increased economic uncertainty, we are acutely aware of the challenges that people, families and businesses are facing up and down the country.

“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,” she said.

The bank said that it had 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, up from £2.7bn a year before, just surpassing expectations.