The average loan-to-value (LTV) ratio of the group’s mortgages was 56%, stable year-on-year, with a fifth of the book due to expire this year at a value of £40bn.
Some 5% of its book, worth £10bn, will mature in Q4.
Its retail banking division delivered an operating profit of £850m, owed to positive income and net interest margin momentum. NatWest said it widened its proposition, including its partnership with Landbay to support buy-to-let (BTL) lending, and continued to integrate customers from Sainsbury’s Bank.
Further, the division lent £1.2bn against Energy Performance Certificate (EPC) A- and B-rated residential properties during the quarter.
Its net interest margin rose five basis points quarter-to-quarter to 2.64%.
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Ulster Bank tracker mortgage cases
Regarding the historical review and investigation of the treatment of tracker mortgage customers in Ulster Bank, NatWest said the redress and compensation process had “largely concluded”, but a small number of cases were outstanding due to uncontactable customers.
Borrowers made complaints with the Financial Services and Pensions Ombudsman (FSPO), and three were challenged by Ulster Bank in the Irish High Court. In June 2023, the High Court ruled in favour of the FSPO, which was appealed by Ulster Bank in September last year. The Court of Appeal allowed this and set aside certain findings of the FSPO, and one part of its decision has been remitted for consideration.
Decisions are still pending from the FSPO.
Growth across the group
NatWest reported growth across all its businesses, including income and lending.
Its profit rose from £1.24bn in Q3 last year to £1.33bn this year, and for the nine months to September, increased from £3.48bn to £4.35bn.
Paul Thwaite, chief executive of NatWest, said: “NatWest Group delivered another strong performance in the third quarter of 2025, underpinned by healthy levels of customer activity and the continued support we provide to them. This is driving positive momentum across our three businesses, with continued lending growth and deposits remaining stable
“With our strategic focus on growth, NatWest Group’s impact can be felt right across the economy, as we help people get on the housing ladder, save and invest for the future and grow their businesses – from innovative start-ups and vital mid-market firms to the largest multinationals responsible for critical infrastructure projects. We are also becoming a much simpler bank, with tight control of costs supporting our digital transformation that is enabling us to anticipate and meet the changing needs of customers at pace.”
He added: “As a result of our consistent delivery and capital generation, we have upgraded our income and returns guidance for 2025 and are well-placed to support our customers, invest for the future and deliver returns to our shareholders.”
