NatWest reported impressive financial results for the first half of 2025, posting an 18% surge in pre-tax profit to £3.6 billion, exceeding market expectations. This achievement was driven by strong lending growth and robust deposit volumes, enabling the bank to initiate a £750 million share buyback and raise its return on tangible equity (RoTE) guidance to 16.5 % for the full year. These gains followed shortly after the bank’s full return to private ownership in late May, signaling a significant shift from its previously state-backed status.
CEO Paul Thwaite underscored the bank’s strategic momentum, highlighting a 28% year-on-year increase in earnings per share to 30.9p and an efficient cost‑income ratio of 48.8 %, down from 55.5 % the previous year. NatWest’s transformation includes significant acquisitions such as the banking arm of Sainsbury’s and a £2.5 billion mortgage portfolio from Metro Bank, further broadening its footprint and balance sheet strength.
The bank’s share buyback program is already in motion. On August 1, it repurchased 1.35 million ordinary shares, followed by a further 990,329 shares on August 6 at an average price of 524.15 pence per share. These share purchases are slated to be cancelled, bolstering per‑share metrics by trimming the outstanding share base.
Aside from its financials, NatWest benefits from a more favorable regulatory outlook. A recent UK Supreme Court decision on motor finance mis‑selling has eased uncertainty for British banks, including NatWest, which saw modest share gains as investor confidence improved.
Despite this positive run, minor volatility remains. On August 5, NatWest shares dipped by nearly 1 % to £5.23, slightly underperforming the broader FTSE 100, though they remain near their 52‑week high. The day before, shares had risen by over 3 % in an outperforming session.
NatWest’s recent performance marks a new chapter: fully privatized, profitable, and generating significant value for shareholders, all while strengthening its strategic position within the UK banking sector.
Key Highlights from NatWest’s H1 2025 Performance:
- 18% rise in pre-tax profit to £3.6 billion for H1 2025, exceeding analyst expectations
- £750 million share buyback launched, with over 2.3 million shares already repurchased
- RoTE guidance increased to 16.5%, reflecting stronger financial performance
- Earnings per share rose by 28% compared to the previous year, hitting 30.9 pence
- NatWest fully returned to private ownership in May 2025 after 16 years of government involvement
