NatWest Reports 40% Profits Jump Amid The Cost of Living Crisis

NatWest has doubled in profits in the last 3 months but warned that there is uncertainty due to the cost of living crisis.

During the peak of the Covid crisis, banks were crucial to save jobs and support the economy.

The bank's operating profits before tax came in at £1.2bn in the year's first quarter, compared to £573m in the final three months of last year.

During last year's first quarter, pre-tax operating profits had been £894m.

The digital acceleration taking place today is reshaping the banking industry.

NatWest, is a major retail and commercial bank in the United Kingdom. It was established in 1968 by the merger of National Provincial Bank and Westminster Bank.

Chief executive Alison Rose says the rest of the year will be more difficult, as customers and businesses grapple with the cost of living crisis.

Mortgage lending increased by 1.5% compared to the final three months of the year to £2.7bn and customer deposits rose £800m compared with the three months to end of December.

The bank also said it would release £38m of cash held back during the COVID-19 pandemic.

In March, NatWest returned to majority private ownership, more than 14 years after it received a massive bailout by taxpayers following the financial crisis.

The government sold a further £1.2bn worth of shares back to the bank, taking its stake - which peaked at 84% in 2009 - down to 48.1%.

Natwest also announced it would release £38 million of cash held back during the Covid crisis, although this compares to £98 million released previously out of £3.2 billion held back at the start of the pandemic.