NatWest has announced a sharp rise in quarterly profits, posting a 36% increase as the UK government reduced its remaining stake in the bank to under 2%.
This marks a significant step towards full privatisation after 17 years of public ownership.
In the first quarter of 2025, NatWest reported an operating profit before tax of £1.8 billion, up from £1.3 billion in the same period last year. The results exceeded analyst forecasts by £200 million.
Chief executive Paul Thwaite confirmed that the strong financial performance positions the bank to reach the upper end of its income and shareholder return targets for the year.
The government’s share in NatWest fell to 1.98% following a series of rapid sell-offs and buybacks. Just last year, the Treasury reduced its holding from 38% at the end of 2023 to just under 10% by December. The latest move edges the bank closer to full private ownership for the first time since its 2008 bailout.
The taxpayer-backed rescue of NatWest, then Royal Bank of Scotland, during the financial crisis cost nearly £46 billion and left the public owning around 84% of the lender.
NatWest chair Rick Haythornthwaite recently thanked taxpayers for their support, assuring shareholders that the bank had addressed past challenges and would manage future risks responsibly.
Meanwhile, other UK banks also reported mixed results. Standard Chartered saw a 10% rise in profits, reaching \$2.2 billion (£1.65 billion) for the quarter, but warned of growing global risks due to rising US tariffs. The bank recorded a \$219 million credit impairment charge, up 24% year-on-year.
Lloyds Bank reported a 7% decline in profits to £1.5 billion, citing higher costs and a £309 million impairment charge, including £35 million set aside for potential fallout from US trade policy.
HSBC also posted a 25% fall in quarterly profits, impacted by the absence of one-off gains from asset sales made in the same period last year. The bank flagged \$900 million in expected credit losses for Q1, a \$200 million increase, linked to rising geopolitical and economic tensions.
The UK’s banking sector continues to navigate uncertain global conditions while delivering strong results in several key areas.
