According to its latest results, approximately 54 per cent of its gross loans and advances in Q3, which came to £389.6bn, came from mortgages.
It added that its stock share of mortgages for the period came to 12.6 per cent, which is a 0.3 per cent increase on the year-to-date.
The lender said that in its mortgage balances 67 per cent were on five-year fixed rates, 24 per cent were on two-year fixed rates, one per cent were on 10-year fixed rates, five per cent were on trackers and three per cent were on standard variable rates.
The firm said that around £15.5bn or around 8.2 per cent of its fixed mortgage book would expire by the end of this year.
It added that arrears levels were normalizing back to pre-COVID levels but did not provide specific figures.
The lender said that its bank net interest margin for Q3 was 2.94 per cent, which 0.19 per cent lower than the prior period.
This was partially attributed to “continued impact on mortgage margins as the higher margin pandemic-era book rolls off and is replaced at lower margins”.
The net interest margin for the year so far stands at 3.11 per cent, the lender said.
Natwest also reported a net impairment charge of £229m for the period, which it said showed “continued low and stable levels of stage three defaults across the portfolio and good book charges related to unsecured lending”.
The company reported an operating profit of £1.2bn, which is nearly a 23 per cent improvement on the same period last year but around 25 per cent lower than in Q2 this year.
Natwest: ‘Ready to stand by our customers’
Natwest’s chief executive Paul Thwaite said: “Today’s Q3 2023 results show that NatWest is a strong bank which is performing well, generating sustainable profits and returns. This performance is built on the foundations of strong customer franchises and a robust balance sheet with high levels of liquidity and a well-diversified loan book.
“As a result, credit losses and impairments remain low and we are ready and able to stand by our customers and businesses through the current economic uncertainty.”
He continued: “Our leadership team has come together to ensure we all keep our eyes on the things that matter most – the 19 million people, families, and businesses we serve. Across the bank, we are resolutely focused on meeting their needs today, whilst getting ahead of what they will need from us tomorrow.
“This is at the core of what we do. It is how we will build long-term value in our bank and deliver sustainable growth.”
