NatWest, trading as Royal Bank of Scotland north of the border, has posted a rise in half-year profit, raised its dividend and upgraded its guidance.
Attributable profit for the six months to the end of June rose 18.5% to £2.488 billion against £2bn last year. Operating profit before tax came in at £3.6bn, up 18.4% from £3bn.
It has declared an interim dividend of 9.5p a share, 58% higher than a year ago, while it intends to buy back £750 million of shares in the second half.
A net impairment charge of £193 million in the second quarter included £81m on the acquisition of balances from Sainsbury’s Bank.
The cost-to-income ratio, which compares operating costs with income, improved to 48.8% from 55.5% last year, helped by investment in technology and efforts to simplify operations.
The figures are the first since the bank was returned to full private ownership following the sale of the government’s stake.
Chief Executive, Paul Thwaite, said: “NatWest Group’s strong performance in the first half of the year reflects our consistent support for our customers and, in turn, delivery for our shareholders.
“We have today upgraded our income and returns guidance for 2025, as well as announcing a 9.5p interim dividend and a £750 million share buyback.
“The role we play as a trusted partner to over 20 million customers is fundamental to our strategy and we continue to focus on helping them achieve their ambitions, with lending, deposits and assets under management once again increasing in H1 2025.
“With positive momentum in our business, we are ambitious for the future and see clear opportunities for further disciplined growth.
“This is complemented by our focus on bank-wide simplification, as we quietly revolutionise how we operate, enhancing our tech and AI capabilities in order to better meet and anticipate the evolving needs of our customers.
“Having returned to full private ownership in Q2 2025, NatWest Group is well placed to step up and play its part in supporting economic growth across the UK and, in doing so, to create sustainable value for all our stakeholders.”
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