NatWest has reported a £3.1bn increase in its net mortgage lending over the first half of the year.
In Q2, its retail banking mortgage balances rose by £1.4bn.
Its retail banking division delivered an operating profit of £1.5m in the first six months of the year, and the group said this was with continued “positive income” and net interest margin momentum.
NatWest said it also welcomed an additional one million customers through its acquisition of Sainsbury’s Bank.
Its retail banking division also completed £2.1bn in climate and sustainable funding, as well as financing on properties with an Energy Performance Certificate (EPC) rating of A or B.
It said in line with wider market trends, new business “accelerated” in Q1 ahead of stamp duty changes. Further, the average loan-to-value (LTV) ratio for new business rose, with a lower share of remortgage activity. The overall LTV of its book remained stable at 56%.
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The group had a total mortgage book of £213.3bn, while arrears were low at 0.63%.
Some 20% or £40bn of its fixed mortgage book is set to mature this year.
NatWest reported a net interest margin of 2.28% in H1 2025, up from 2.07% a year ago.
Its profit was £2.7m, up from £2.3m last year.
Paul Thwaite, chief executive of NatWest, said: “NatWest Group’s strong performance in the first half of the year reflects our consistent support for our customers and, in turn, delivery for our shareholders.
“With positive momentum in our business, we are ambitious for the future and see clear opportunities for further disciplined growth. This is complemented by our focus on bank-wide simplification, as we quietly revolutionise how we operate, enhancing our tech and artificial intelligence (AI) capabilities in order to better meet and anticipate the evolving needs of our customers.
“Having returned to full private ownership in Q2 2025, NatWest Group is well-placed to step up and play its part in supporting economic growth across the UK and, in doing so, to create sustainable value for all our stakeholders.”
