This performance was driven by increased deposits and mortgage lending, the latter boosted by buyers finalising purchases before stamp duty changes.

The positive results coincide with the UK government reducing its shareholding in the bank to just under 2%. This marks a significant step towards NatWest returning to full private ownership, 17 years after its £46bn taxpayer-funded bailout during the 2008 financial crisis. The government anticipates recouping roughly £25bn of the original rescue cost.

Chief Executive Paul Thwaite expressed confidence that the bank would meet the upper end of its financial guidance for the year. He noted that despite macroeconomic uncertainties, including trade tariff concerns, NatWest had observed no significant changes in customer behaviour, citing limited exposure to directly impacted sectors. This contrasts with rivals Lloyds and HSBC, which reported profit falls and increased provisions for potential bad debts partly linked to global economic headwinds.