The performance was driven by robust lending growth and tight cost controls, prompting the bank to upgrade its full-year guidance.

For the nine months to Q3 2025, operating profit reached £5.8bn, up from £4.7bn in the corresponding period last year. Total income also surpassed forecasts.

The bank attributed the strong performance to healthy customer activity. Total lending grew by £4.4bn in the quarter, including £1.7bn in mortgage activity. This income growth, combined with disciplined cost management, led to an improved cost/income ratio, which fell to 47.8% for the year-to-date.

Other key metrics showed progress, with the Return on Tangible Equity (ROTE) standing at 19.5% for the first nine months, and the CET1 capital ratio strengthening to 14.2%.

Reflecting this momentum, NatWest raised its full-year guidance. It now expects total income of around £16.3 billion (up from a previous forecast of over £16.0 billion) and a ROTE greater than 18.0% (up from 16.5%).

Chief Executive Paul Thwaite called the results “another strong performance” driven by “positive momentum” and “tight control of costs”.

Analysts agreed, with Russ Mould, investment director at AJ Bell, commenting that “being fully privately owned seems to be suiting NatWest”. Following its full privatisation and recent deals for Sainsbury’s Bank and parts of Metro Bank’s mortgage book, speculation is turning to the bank’s next strategic move.

John Moore, wealth manager at RBC Brewin Dolphin, said: “The rise in revenue combined with cost controls has made for not only a positive bottom line in immediate income but also strengthens the balance sheet further.

“Over the last year or so, share buybacks have not only removed the influence of government but have helped to underpin earnings per share growth and investors can potentially expect more of the same in the short-term.

“Since NatWest last reported, there have been rumours of high street banks looking at potential M&As, so it will be interesting to see what strategic direction NatWest sets off in now that it has the freedom and firepower to build on the Sainsbury’s Bank deal.”

Mr Mould cautioned that “previous acquisition sprees did not necessarily end well for NatWest in the past”.