NatWest Group posts £1.25 billion Q1 profit, up 36%, and moves 2025 guidance to top of range

NatWest Group reported attributable profit of £1,252 million for the first quarter of 2025 on 2 May 2025, up 36% on the same period a year earlier, with a return on tangible equity (RoTE) of 18.5% and earnings per share of 15.5 pence.

Total income excluding notable items was £3,952 million, £538 million higher than in the first quarter of 2024 and 2.1% above the fourth quarter, reflecting deposit margin expansion, balance growth and increased trading income. The net interest margin rose by 8 basis points from the previous quarter to 2.27%. Other operating expenses were 4.6% lower than a year earlier, while the net impairment charge was £189 million, or 19 basis points of gross customer loans.

GUIDANCE MOVED TO UPPER END

The bank said it now expects 2025 RoTE to be at the upper end of its previously guided range of 15-16% and income excluding notable items at the upper end of its £15.2-15.7 billion range. It expects group operating costs, excluding litigation and conduct costs, of around £8.1 billion and a loan impairment rate below 20 basis points, and said it expects to pay ordinary dividends of around 50% of attributable profit from 2025.

The common equity tier 1 (CET1) ratio was 13.8%, 20 basis points higher than at the end of 2024. Net loans to customers excluding central items rose by £3.4 billion, or 0.9%, in the quarter to £371.9 billion, while customer deposits excluding central items increased by £2.1 billion. The liquidity coverage ratio stood at 150%.

“Our strong first quarter performance demonstrates the positive momentum in our business as we deliver against clear strategic priorities, and we now expect to be at the upper end of our income and returns guidance for 2025,” said Paul Thwaite, chief executive.

The results came as the UK government continued to reduce its shareholding in the bank. The stake fell below 10% in December 2024, and in March 2025 the government ceased to be NatWest's largest shareholder following a further share sale.