NatWest profits soar with costs cut and Sainsbury deal

NatWest Group has revealed its profits surged by 18 per cent in the first half of 2025 as the banking group gained customers after buying Sainsbury’s Bank and bringing down business costs.

- ANNA WISE

The group – which includes NatWest, Royal Bank of Scotland, and Coutts – revealed it is returning more cash to investors, having reverted to private ownership in May.

It reported a pretax operating profit of £3.6bn for the first six months of the year. This was 18 per cent higher than the same period a year ago, and ahead of the £3.5bn that some analysts were expecting.

Total income jumped by about 12 per cent year-on-year, with its retail banking division boosted by higher customer deposits.

Savings among consumers were above the long-term average, according to the bank, while nonessential spending on things like recreation and entertainment was positive.

Paul Thwaite, NatWest Group's chief executive, said this reflected signs that consumer confidence is increasing.