The high street lender is the latest bank to reveal bumper profits this week, following Barclays and Lloyds
NatWest Group profits jumped by a fifth in the first half of the year to £4.3billion.
This is up 20% on the same period in 2025. The high street lender is the latest bank to reveal bumper profits this week, following Barclays and Lloyds.
Barclays revealed on Tuesday that its pre-tax profits jumped to £6.1billion over the first half of 2026, while Lloyds earnings jumped to £4.3billion for the same period.
Union group TUC said the case for increasing the tax on bank profits is “overwhelming” as it responded to the results.
TUC General Secretary Paul Nowak said: “The big banks are coining it in from higher interest rates while working people are struggling with mortgage misery and higher bills.
“Andy Burnham has rightly been straight out of the blocks with measures to help households with the cost of living.
“But with no real end in sight to the Iran war, energy prices will rise further which is why the government will need to go further in the months ahead.”
Currently the bank surcharge is an additional 3% corporation tax on the profits of banking companies above £100million, which was reduced from 8% in April 2023 by the Conservatives.
TUC estimates that reversing the Tory cuts and setting it at 8% would raise £9billion over four years. Doubling this to 16% would bring in £24billion, while a 35% surcharge would deliver £60billion.
NatWest said its profits were boosted after lending and bank deposits increased over the period, while the bank lowered its cost-to-income ratio.
The lender is expecting an improved financial performance for the year. Chief executive Paul Thwaite said: “We are confident in the scale and capabilities we’re building and the opportunities ahead.
“Through our long-standing relationships, deep regional presence, and responsible adoption of AI, we are well placed to accelerate our progress by doing even more to meet our customers’ needs, as well as helping to generate growth in every nation and region of the UK.”
It comes after interest rates were kept on hold again with the Bank of England warning that inflation is still set to rise again this year.
The base rate, which affects the interest that banks and lenders apply to mortgages, loans and saving accounts, is currently at 3.75%.
Inflation fell to a 15-month low of 2.6% last month, but the Bank of England expects it to peak at about 3.2% in October and November if the conflict in the Middle East continues and energy prices remain high. The Bank of England has a target of 2% inflation.
