NatWest has recorded a year-on-year profit increase of 35%, totalling £1.68bn in the third quarter.

In the three months to 30 September, the bank’s operating profit jumped by 30.4% to £2.18bn, beating expectations previously set at £1.83bn.

NatWest’s total income also landed ahead of guidance, increasing by 15.7% to £4.33bn, while its net interest margin jumped by 19 bps.

Chief executive at NatWest, Paul Thwaite, said that the latest results are "underpinned by healthy levels of customer activity", which is driving positive momentum across the group.

He added: "With our strategic focus on growth, NatWest Group's impact can be felt right across the economy, as we help people get on the housing ladder, save and invest for the future and grow their businesses - from innovative start-ups and vital mid-market firms to the largest multinationals responsible for critical infrastructure projects.

"We are also becoming a much simpler bank, with tight control of costs supporting our digital transformation that is enabling us to anticipate and meet the changing needs of customers at pace."

In its outlook, NatWest increased its income excluding notable items full year guidance, which is now expected to be around £16.3bn, while its return on tangible equity is now set to be greater than 18%.

The bank also reaffirmed its guidance outlined in its H1 results, with operating costs set to land around £8.1bn.

NatWest said it will introduce guidance for the 2026 financial year and new targets for 2028 in its full year results, which will be published on 13 February 2026.

Head of markets at interactive investor, Richard Hunter, described NatWest’s latest results as a "sparkling set of numbers".

He concluded: "As far as investors are concerned, NatWest is in a sweet spot. The government shackles have gone, the group has prodigious amounts of cash and acquisitions to boost growth further seem likely.

"Indeed, it remains to be seen whether this new-found freedom will enable a more aggressive acquisition policy, with NatWest already having made what it described as two significant purchases in the form of Metro Bank’s mortgage book and Sainsbury’s Bank and reportedly having been rebuffed in an approach for Santander’s UK operation.

"Its significant cash generation will provide an interesting dilemma on whether to continue to bolster shareholder returns, make further acquisitions, invest heavily in the business particularly in regard to growing digitalisation, or perhaps a combination of all of these options."

---