8/1011 sources · 9 publishersUpdated Oct 30, 14:37 UTC
NatWest Q3 profit edges higher as net interest income misses expectations
NatWest Group reported third-quarter pretax profit of £2.23 billion, up 1.9% year over year, with total income of £4.64 billion. Net interest income rose 8.9% to £3.56 billion, but fell short of expectations, while the Evelyn Partners acquisition lifted wealth income. The bank did not raise its guidance for the year.
Why it matters
The weaker-than-expected net interest income and unchanged guidance leave investors without an earnings outlook upgrade. Richard Hunter of interactive investor said the muted update explained the negative market reaction, while NatWest also faces a higher bank surcharge from January.
Key facts
- 1Third-quarter pretax profit increased 1.9% year over year to £2.23 billion. morningstar.com
- 2Net interest income rose 8.9% to £3.56 billion, but missed expectations. morningstar.com
- 3Total income reached £4.64 billion, in line with forecasts. morningstar.com
- 4The net interest margin increased to 2.50% from 2.37%. morningstar.com
- 5Wealth-division income rose 47% from the second quarter after the Evelyn Partners acquisition. cityam.com
- 6NatWest did not upgrade its full-year guidance after the results. cityam.com
Open questions
- Materials report different numbers of jobs cut during the efficiency drive, giving 1,000 and 1,400.
- The materials do not reconcile differing revenue measures presented in different currencies and under different labels.
Summary written by AlphAI AI Desk from 11 of 11 sources. Not investment advice. Figures are as stated by the linked sources.