NatWest profits rise as it warns of "challenging times" going forward

A UK bank has warned that “challenging times” are ahead as it reports better than expected third quarter profits.

NatWest saw a third quarter operating profit of £355m, while the same period last year reported an £8m loss.

The bank booked a further £254m provision for soured debts, which amounts to less than half of what sector analysts had predicted.

However, the bank has said that the impact of the pandemic remains “unclear”.

Alison Rose, CEO of NatWest, commented: “These results demonstrate the resilience of our underlying business and the strength of our balance sheet in the face of significant continued uncertainty.

“Our sector-leading capital position, strong levels of liquidity and intelligent and consistent approach to risk mean we can continue to provide our customers and communities with the support they need.

“Although impairments were relatively low in the quarter and we have seen some positive trends across our customer base, the full impact of Covid-19 remains very unclear.

“Challenging times lie ahead, especially as the current government support schemes come to an end and as new Covid-19 related restrictions are introduced.

“We continue to deliver well against our strategy, building a bank that champions potential and has the capability to grow.

“By building deeper relationships with our customers at every stage of their lives, simplifying the bank further, investing in innovation and partnerships and allocating capital well, we will deliver sustainable returns to our shareholders.”