NatWest says profits up 36% as Treasury stake falls below 2%

NatWest has reported a 36% jump in profits in the first three months of this year as the UK government reduced its stake in the bank to less than 2%, paving the way to a return to fully private ownership after 17 years.

- Mark Sweney

The bank reported operating profit before tax of £1.8bn, up from £1.3bn in the same period last year, beating analysts' forecasts by £200m.

The rise was driven by higher deposits in NatWest's retail and commercial services and increased mortgage lending, as homebuyers in England and Northern Ireland raced to complete purchases before rises in stamp duty at the end of March.

Paul Thwaite, NatWest's chief executive, said the performance meant the bank expected to hit the upper end of its guidance on income and shareholder returns this year.