NatWest beats forecasts as bank returns to profit in the first quarter
NatWest returned to profit in the first quarter of the year after releasing cash it had set aside to cover bad loans due to the pandemic.
The bank reported a pre-tax profit of £946m for the first three months of the year, beating an average analyst forecast of £536m.
It exceeds the £519m pre-tax profit that NatWest made in the same period last year.
Like Lloyds and HSBC, NatWest’s profits were boosted by a net impairment release of £102m.
The bank, which remains 60 per cent taxpayer-owned, had slumped to a £351m pre-tax loss in 2020.
Following the quarterly trading update, shares in NatWest fell 3.3 per cent as markets opened.
Alison Rose, CEO of NatWest, said that the quarterly profit reflected a strong performance in its core franchises.
“We continue to make progress against our strategic targets, growing in key areas, simplifying the bank and accelerating our digital transformation to meet the rapidly evolving needs of our customers.
“We are building a relationship bank for a digital world. A bank that champions potential and plays a positive role in society in order to build long-term value and drive sustainable returns for our shareholders.”
Richard Hunter, head of markets at Interactive Investor, said: “The emerging themes from the banks continue, with NatWest the latest to benefit from an impairments release which has turbocharged quarterly profit.”