NatWest Profit Climbs 18% as Lender Ups Outlook and Unveils £750 Million Buyback

NatWest Group reported an 18% year-on-year increase in operating pretax profit to £3.6 billion for the six months ended 30 June, marginally ahead of the £3.46 billion average forecast compiled by the bank. Higher loan volumes and deposit growth underpinned the performance, which followed similarly strong results from rival Lloyds a day earlier. On the back of the earnings beat, the British lender launched a £750 million ($1 billion) share buyback and lifted its full-year guidance, saying it now expects a 16.5% return on tangible equity, up from a previous ceiling of 16%. The announcement comes less than two months after NatWest completed its return to full private ownership, closing a chapter that began with its 2008 bailout.