Shares in NatWest Group climbed around 5% this morning after the banking giant beat expectations for the third quarter and raised its profit guidance for the full year. The owner of Royal Bank of Scotland reported an operating profit of £1.67 billion for the third quarter as growing confidence in the economy underpinned growth in lending for mortgages and to business , with deposits and investments rising.
Chief executive Paul Thwaite declared the UK economy has “undoubtedly performed better than many expected” at the start of year, with inflation now below target, interest rates beginning to decrease, and unemployment low, sparking customer activity. However, he said confidence was not felt by everyone, noting that while spending on debit card was up, there is evidence of some consumers holding back from bigger purchases. And he cautioned that some businesses were waiting for “greater clarity” on issues such as Budget, interest rates and the forthcoming US election before making decisions.
Read more: Edinburgh investment giant abrdn in share price plunge Glasgow estate agent Corum reveals move into lettings market 'Edinburgh has become key player in luxury market' Mr Thwaite also declined the comment specifically on the Budget, amid speculation Chancellor Rachel Reeves is planning to increase bank taxes and raise employer national insurance contributions. He said the bank was broadly supportive of measures to boost grow infrastructure investment across all the natio.