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NatWest reports flat third-quarter profit, reaffirms outlook - Finance news and analysis from Global Banking & Finance Review
Finance

NatWest reports flat third-quarter profit, reaffirms outlook

Published by Global Banking & Finance Review

Posted on October 30, 2026

2 min read

· Last updated: October 30, 2026

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NatWest Reports Flat Third-Quarter Profit, Sticks to 2023 Outlook

NatWest Third-Quarter 2023 Financial Results Overview

Profit and Lending Performance

LONDON, Oct 30 (Reuters) - NatWest on Friday reported third-quarter profit flat versus the year before, as it grew lending while maintaining deposit margins in the face of increasing competition.

Performance Targets and Economic Outlook

The British bank like rivals HSBC and Lloyds reaffirmed its performance targets for the year, rather than upgrading them as some had hoped, in a sign of how the country's lenders are facing a tougher economic outlook and increasing competition for savers' money.

Key Financial Highlights

  • NatWest reported pretax operating profit for the July-September period of £2.2 billion, in line with the average analyst forecast
  • Cost-income ratio was 45.7% for the year to date, 2.1 percentage points lower than the previous year on gross cost savings of around £420 million as the bank cuts jobs and invests in AI
  • Assets in the wealth business grew by £1 billion in the quarter following Evelyn partners acquisition

CEO and Analyst Commentary

CEO Statement

• "We continue to see broad-based growth in our three customer franchises, with lending, deposits and assets under management all increasing during the quarter, CEO Paul Thwaite said

Analyst Perspective

• Jefferies analyst Jonathan Pierce said this quarter shows British banks "tearing off the band aid" by lowering investors' expectations for interest income growth, as margin pressures intensify

Reporting Credits

(Reporting by Lawrence White; Editing by Tommy Reggiori Wilkes)

Key Takeaways

  • Pretax operating profit for July–September was £2.2 billion, matching analyst consensus and flat versus the prior year.
  • Cost‑income ratio improved, aided by £420 million in gross cost savings, as NatWest invests in AI and reduces headcount.
  • Wealth assets rose by £1 billion following the Evelyn Partners acquisition, underscoring growth in deposits, lending and AUM.
  • Despite progress, the bank held its annual outlook steady—reflecting broader margin pressure and intensifying competition among UK lenders.
  • Barclays recently raised its share price target to GBp 850, while anticipating the same £2.2 billion Q3 operating profit, signaling investor confidence despite macroeconomic headwinds.

Frequently Asked Questions

What was NatWest’s third-quarter profit?
NatWest reported a third-quarter pretax operating profit of £2.2 billion, flat compared to the previous year.
Did NatWest change its financial outlook for 2023?
No, NatWest reaffirmed its performance targets for the year and did not upgrade its outlook.
How did NatWest’s cost-income ratio change?
The cost-income ratio for the year to date was 45.7%, improving by 2.1 percentage points from last year.
What contributed to NatWest’s asset growth this quarter?
NatWest’s assets in the wealth business grew by £1 billion, partly due to its acquisition of Evelyn Partners.
What is the competitive landscape for UK banks according to the article?
UK banks, including NatWest, face tougher competition for savers' money and a challenging economic outlook.

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