Natwest (LON:NWG) beat analyst expectations in the third quarter after posting its pre-tax profit for £355 million.
Lenders’ profits increased due to the number of loans issued during the pandemic were well above the expected loss of £705 million.
Heading towards the end of the year, Natwest says it is likely to be at the bottom edge of £3.5-4.5 billion.
Commenting on the results for the third quarter, CEO Allison Rose said: Our sector-leading capital position, a strong level of liquidity and an intelligent and consistent approach to risk means we can continue to provide the support we need to our customers and our community.
“While quarterly impairment has been relatively low and there have been some positive trends across the customer base, the full impact of Covid-19 remains very unknown. There will be a challenging time ahead, especially as the current government support scheme ends and new Covid-19-related restrictions are introduced. We will continue to realize well for our strategy, advocate for possibilities, and build banks with the ability to grow.
“We provide sustainable returns to our shareholders by building deeper relationships with our customers at every stage of our life, simplifying our banks even more, investing in innovation and partnerships, and successfully allocating capital,” Rose added.
Throughout the first half of the year, Natwest fell into losses due to a £2.9 billion clause on potential loan losses.
In September, lenders launched a new savings account for clients with little savings. Natwest said the new savings account will help consumers create buffer zones during economic uncertainty and will help efforts to ensure that 2 million customers save money by 2023.
Natwest Shares (LON:NWG) remained stable in pre-market trading. Until this year, they have dropped by 46%, currently at 116.75p (0735GMT).
