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NatWest reports flat third-quarter profit, reaffirms outlook

By Reuters News

LONDON, Oct 30 (Reuters) - NatWest NWG.L on Friday reported third-quarter profit flat versus the year before, as it grew lending while maintaining deposit margins in the face of increasing competition.

The British bank like rivals HSBC HSBA.L and Lloyds LLOY.L reaffirmed its performance targets for the year, rather than upgrading them as some had hoped, in a sign of how the country's lenders are facing a tougher economic outlook and increasing competition for savers' money.

  • NatWest reported pretax operating profit for the July-September period of £2.2 billion, in line with the average analyst forecast

  • Cost-income ratio was 45.7% for the year to date, 2.1 percentage points lower than the previous year on gross cost savings of around £420 million as the bank cuts jobs and invests in AI

  • Assets in the wealth business grew by £1 billion in the quarter following Evelyn partners acquisition

  • "We continue to see broad-based growth in our three customer franchises, with lending, deposits and assets under management all increasing during the quarter, CEO Paul Thwaite said

  • Jefferies analyst Jonathan Pierce said this quarter shows British banks "tearing off the band aid" by lowering investors' expectations for interest income growth, as margin pressures intensify

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