NatWest reports record profits and boosts shareholders by £1.5 billion

In the United Kingdom, NatWest Group has announced its financial results for the first half of 2025. The bank reported substantial profits exceeding £3.5 billion, which surpasses initial expectations. This announcement marks the first financial report since the UK government divested its remaining shareholding in NatWest, a legacy stemming from the financial crisis more than a decade ago. Following this impressive performance, NatWest has decided to enhance returns to shareholders significantly. The group plans to initiate a £750 million share buyback and has also increased the interim dividend by 58%. As a result, shares saw an uptick of nearly 1.5% early on Friday morning. Amidst general market declines, with most FTSE 100 companies reporting a drop, NatWest stands out with a positive return. This moment highlights the bank's recovery and growth trajectory amidst a changing economic landscape, particularly as the European Central Bank chose to pause interest rate cuts amid high inflation concerns across the continent. The announcement coincides with broader economic developments, including a potential EU-US trade agreement, which could introduce tariffs on imports from the EU, affecting market dynamics. Overall, NatWest’s strong financial results reflect not only its robust operational performance but also a stabilizing economy in the aftermath of turbulent financial times.