By Basant El-Faramawy
NatWest Group reported a 2 per cent increase in quarterly operating pre-tax profit to £2.2 billion for the three months to September, while net interest income rose nearly 9 per cent to £3.6 billion, joining other UK lenders benefiting from high interest rates.
Workforce transformation and AI
The bank cut about 1,000 full-time roles in the quarter, bringing this year's total job losses to 1,400, as it pushes to become a simpler, technology-driven institution. The reduction was partly offset by the acquisition of wealth manager Evelyn Partners, which added roughly 2,200 staff. Chief executive Paul Thwaite said the “underlying shape of the workforce is changing quite a bit” and highlighted pervasive AI use across the organisation, creating new dedicated roles while transforming others. The efficiency drive delivered £420 million in cost savings, lowering the cost-to-income ratio to 45.7 per cent year-to-date.
Consumer spending and lending trends
Thwaite noted “good resilience” in the economy, with customer data showing continued spending and investment. Travel and holiday spending remained strong, while fuel costs pressured households: customers spent 20 per cent more on fuel but bought 10 per cent fewer litres. The lending book grew in the third quarter, driven by higher mortgage balances from remortgaging activity, though demand from buyers dipped modestly.
