NatWest posts 41% Q1 profit growth as rising rates boost income

pLONDON Reuters British statebacked bank NatWest reported a 41 increase in first quarter profits on Friday, as rising interest rates and higher income boosted the lenders performance.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pNatWest reported pretax profits of 1.2 billion pounds 1.50 billion for the first three months of the year, up from 885 million pounds the previous year, restated to exclude its axed Irish business.p

pThe profit was well ahead of the 755 million pounds average of analyst forecasts compiled by the bank.p

pBritish banks have benefitted from the countrys economic rebound from COVID19 lockdowns and higher benchmark interest rates, but face potential further pain as soaring inflation squeezes household incomes and threatens higher loan defaults.p

pNatWest CEO Alison Rose said she was “very aware of the challenges and concerns the costofliving crisis is causing”, but the lender did not update its economic forecasts, leaving this to later in the year.p

pNatWest‘s rivals Barclays, Lloyds and HSBC all warned in earnings this week of potential damage to their finances from inflation, which has heightened due to the economic impact of Russia’s invasion of Ukraine.p

pLike its peers, the banks core capital ratio fell significantly, to 15.2 from 18.2 last year.p