NatWest Group Reports 18% Rise in First-Half Profit, Launches $1 Billion Share Buyback Program

NatWest Group reported an 18% rise in first-half profit and a total income increase, beating forecasts. The bank also announced a £750 million share buyback program and a £125 million investment for Vivid from Royal Bank of Scotland. Additionally, NatWest launched a £500 million loan offering to build social rent housing and entered a collaboration with Accenture and Amazon to accelerate digital modernization.

NatWest Group has reported an 18% rise in first-half profit, significantly outperforming analyst forecasts. The bank's operating pretax profit for the January to June period was £3.6 billion, compared to the average analyst forecast of £3.46 billion [1]. This strong performance has allowed NatWest to announce a £750 million share buyback program [1], [2], [3].

In addition to the buyback, NatWest has also allocated £125 million for Vivid from Royal Bank of Scotland [4]. Furthermore, the bank has launched a £500 million loan offering to build social rent housing, demonstrating its commitment to supporting the UK housing market [4]. NatWest has also entered a collaboration with Accenture and Amazon to accelerate digital modernization, aiming to enhance its operational efficiency and customer experience [4].

NatWest's improved financial outlook is driven by steady growth in loans and deposits, as well as a reduction in business costs. The bank's cost-to-income ratio fell to 48.8% over the first half, from 55.5% the prior year, indicating a more efficient operating model [4]. This cost reduction, coupled with increased lending and higher customer deposits, has contributed to NatWest's robust performance.

The bank's shares have seen a 47% increase in the last year, reflecting investor confidence in the lender's ability to navigate a challenging economic environment [1], [2]. NatWest's return to full private ownership in May 2025 has also been a significant milestone, marking the end of a costly taxpayer-funded government investment that dates back to the 2008 crisis [1], [2].

NatWest's CEO, Paul Thwaite, has highlighted the bank's focus on bank-wide simplification and the enhancement of its tech and AI capabilities to better meet evolving customer needs. This strategic shift is expected to drive further growth and value creation for all stakeholders [4].

References:
[1] https://www.reuters.com/business/finance/natwest-reports-18-rise-first-half-profit-announces-1-billion-buyback-2025-07-25/
[2] https://www.reuters.com/business/finance/natwest-announces-18-rise-first-half-profit-fresh-1-billion-buyback-2025-07-25/
[3] https://uk.finance.yahoo.com/news/natwest-raises-guidance-beats-profit-forecasts-share-buyback-064438487.html
[4] https://finance.yahoo.com/news/natwest-profit-surges-18-cutting-070617493.html