NatWest profits rise by a quarter as lending and deposits grow

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.UK bank NatWest has reported a 25.7 per cent rise in quarterly profits and upgraded its forecasts for the year thanks to improved margins and growth in its lending and deposit base.Pre-tax operating profit in the three months to September was £1.7bn, compared with £1.3bn in the same period last year and above analyst expectations of £1.5bn. Revenues rose to £3.7bn, slightly above forecasts. The bank now expects its return on tangible equity — a key measure of profitability — to be above 15 per cent this year, compared with a previous forecast of 14 per cent. Its shares were up nearly 5 per cent in morning trading in London on Friday.However, NatWest also set aside £245mn in provisions for bad loans, well above expectations of £173mn, and flagged a rise in troubled commercial and institutional loans in particular. NatWest’s commercial bank said it…