NatWest Group — the bank formerly known as RBS — said on Friday its 2025 operating pre-tax profit rose 24.4% to £7.71 billion as its total income grew 13.2% to £16.64 billion.
NatWest is proposing a final dividend of 23p per share or £1.8 billion, bringing the total for the year to 32.5p, up 51% on 2024.
The Edinburgh-registered company said customer deposits increased £10.4 billion in 2025 to £441.7 billion, “primarily reflecting £7.8 billion growth in Retail Banking, across Savings and Current accounts, and Commercial & Institutional increased by £2.3 billion largely due to higher balances within Corporate & Institutions and Business Banking.”
Richard Hunter, Head of Markets at interactive investor, said: “This is a sparkling set of numbers by any standards, as NatWest continues the relentless recovery from its historic woes.
“As far as investors are concerned, NatWest is in a sweet spot. The government shackles have gone, the group has prodigious amounts of cash and acquisitions to boost growth further are playing out.
“Indeed, this new-found freedom has already enabled a more aggressive acquisition policy, with NatWest having previously made what it described as two significant purchases in the form of Metro Bank’s mortgage book and Sainsbury’s Bank, both of which it would appear have been integrated seamlessly.
“In addition, while the £2.7 billion purchase of Evelyn Partners earlier this week has had mixed reviews given some questions being asked around the price paid, there is little doubt that the acquisition will lift the Private Banking and Wealth Management business to another level …
“Within its three main units, operating profit rose by 28% to £3.12 billion in Retail Banking, by 49% to £394 million in Private Banking and Wealth Management and by 13% to £4.06 billion in Commercial & Institutional.
“Revenue generally was boosted by loan growth, higher customer balances and structural hedge income. Lending increased by £20.7 billion over the year and deposits by £10.4 billion, with customer impairments of little concern …”
NatWest Group CEO Paul Thwaite said: “Our performance reflects the progress we have made against our strategic priorities. Income of £16.4 billion and a Return on Tangible Equity of 19.2% are significantly up on last year, and ahead of guidance, whilst dividends per share increased by 51% compared to 2024.
“It is clear our strategy is working, and we are delivering consistently. We are raising our ambition and sharpening our strategic focus, with stretching new targets in place. We must now make the most of the investment we’ve made to become even more productive, build deeper customer relationships and ensure we are the bank of choice in the areas we want to grow.
“Across NatWest Group, we are determined to succeed with our customers as a trusted partner to them and the UK, whilst delivering for our shareholders.”