A branch of the NatWest chain of banks. NatWest reported stronger profits but a small outflow of customer deposits.NatWest reported higher-than-expected profits of £1.3bn in the first three months of this year, and said it would be able to navigate a tough economic environment.
Banks have been helped in the last year by rising interest rates, which allow them to earn higher net interest margins – the difference between the rates they pay on deposits and those they charge on loans. However, they are also having to brace for slowing economies, which could dent their earnings.The decline of 2.6% in deposit balances is an area of slight disappointment, relating to market competition and contraction, and showing a marginal shift in customer behaviour.