NatWest Group PLC on Friday lifted its annual guidance, and its third-quarter earnings beat consensus.
Shares in the company surged 4.6% to 378.50 pence each in London on Friday morning, the best large-cap performer.
The lender said total income increased 7.3% on-year to £3.74 billion in the three months to September 30, from £3.49 billion a year prior. On-quarter, it climbed 2.3% from £3.66 billion.
Pretax profit spiked 26% year-on-year to £1.67 billion from £1.33 billion. It slipped 1.5% from £1.70 billion in the second-quarter. Nonetheless, it topped consensus of £1.46 billion.
NatWest also beat on total income, which had been expected to land at £3.58 billion.
NatWest’s net interest margin rose to 2.18% from 2.05% a year prior, and 2.10% in the second quarter.
The company now expects to achieve a return on tangible equity above 15%, its outlook raised from ‘above 14%’. Total income excluding notable items is to be around £14.4 billion, up from its previous forecast of ‘around £14.0 billion’. Total income excluding notable items in the third-quarter rose 7.3% on-year and 5.1% on-quarter to £3.77 billion. For the whole of 2023, it totalled £14.34 billion, so it expects growth of around 0.4% for 2024.
NatWest in February had forecast a 2024 outcome in the range of £13.0 billion to £13.5 billion. It maintained its outlook in April, but then raised it in July.
Chief Executive Paul Thwaite said: ‘As the UK’s biggest bank for business, and one that serves millions of households, NatWest Group plays a key role in driving economic growth across the UK. Throughout the third quarter of 2024, we have grown our lending, helping customers to buy or remortgage their homes or to start and grow their businesses. 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.’
The Edinburgh-based bank confirmed Thwaite as its permanent CEO. He had held the role on an interim basis after Alison Rose resigned from the role in July 2023. The scandal concerning the closure of the Brexit-backing politician Nigel Farage’s Coutts account culminated in Rose’s resignation at the time.
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