NatWest Group reported a 20% increase in profits to £4.3 billion for the first half of the year. This surge in profits follows similar announcements from Barclays and Lloyds. Barclays disclosed a pre-tax profit of £6.1 billion for the same period in 2026, while Lloyds reported earnings of £4.3 billion.
The Trade Union Congress (TUC) emphasized the need to raise taxes on bank profits in response to these results. TUC General Secretary Paul Nowak highlighted concerns about the disparity between bank profits and the financial challenges faced by ordinary citizens.
NatWest attributed its profit growth to increased lending and bank deposits, along with improvements in its cost-to-income ratio. CEO Paul Thwaite expressed confidence in the bank’s performance outlook for the year, citing strategic capabilities and customer-oriented initiatives.
The Bank of England’s decision to maintain interest rates amid inflation concerns was noted, with projections of inflation peaking at around 3.2% later this year. The central bank aims to keep inflation at a target rate of 2%.
TUC estimates that reversing previous tax cuts could generate significant revenue, with potential surcharges of 8%, 16%, and 35% yielding substantial amounts over the next few years.
As economic uncertainties persist, banks like NatWest are focusing on enhancing customer service and operational efficiency to navigate challenges and drive growth in the UK market.