NatWest Group's chief executive, Paul Thwaite, urged the government to reconsider increasing taxes on banks, even as the lender reported a 30.4% jump in profits to $2.18 billion in the three months ending September, compared to $1.67 billion in the same period last year. He acknowledged the difficult choices faced by Chancellor Rachel Reeves in addressing a potential $30 billion shortfall in public finances but stressed the importance of balancing fiscal discipline with policies that support stability, consistency, and growth.
Thwaite highlighted that strong economies require strong banks and that the government should be thoughtful about the signals it sends to investors considering the UK as a long-term home for capital. He also pointed out NatWest's crucial role in the UK economy, including holding one in eight UK mortgages and providing lending to one in four UK businesses. The bank also upgraded its profit guidance for the full year and announced a $750 million share buyback.
Analysts like Matt Britzman from Hargreaves Lansdown noted that NatWest's strong results, which comfortably beat expectations, reinforce the idea that the domestic banking sector still has room for growth. This positive performance from UK-focused banks indicates they are doing better than often perceived. Concerns have been raised that a windfall tax could lead banks to increase borrowing costs or reduce savings rates, though economists suggest this would have a neutral overall economic effect.
Thwaite's comments came after NatWest's operating pre-tax profits rose 18% to $3.6 billion in the first half of the year, and an overall profit of $4.4 billion so far this year. He emphasized using the bank's capital to invest in the business and support customers, which would, in turn, bolster the broader UK growth agenda. The bank's return to full private sector ownership was also cited as a factor in attracting new investors, making consistency and predictability in policy vital for them.
