NATWEST reported profits rose 36% in the first three months of the year as the government lowered its stake in the bank to less than 2%, paving the return on full private ownership after 17 years.

The bank reported operating profit of £1.8 billion, up from £1.3 billion a year ago, beating the analyst consensus forecast of £200 million.

NATWEST CEO Paul Thwaite said the strong performance means the bank is expected to reach the top in revenue guidance and shareholder returns this year.

As the government cut its stake in NATWEST to 1.98% on Thursday, it achieved great results.

Last year, government equity fell by nearly three quarters, from 38% at the end of 2023 to less than 10% in December, a combination of two direct buybacks and rapid sell-offs by Natwest.

The Ministry of Finance rescued Natwest (then known as Royal Bank of Scotland) at the peak of the financial crisis in 2008. The resulting nationalization gives taxpayers about 84% of lenders.

Last month, NATWEST Chairman Rick Haythornthwaite thanked British taxpayers for their bailouts and assured shareholders that despite government pressure, the boss has “solved past issues” and will not “open up the torrent of risks”.

Additionally, Standard Charter also reported strong first quarter, with profits rising 10% to $2.2 billion (£1.65 billion). But the London-based bank warned of the potential impact of U.S. tariffs as it reported a $219 million credit barrier fee over the period, a 24% increase year-on-year, a sign that trade tensions affect credit quality.

"We performed well in the first quarter of 2025," said Bill Winters, the bank's CEO. "The subsequent imposition of trade tariffs adds to the complexity of the global economy and geopolitical, and we remain paying attention to the external environment.

On Thursday, Lloyds revealed that a 7% slide in the first quarter profits reached £1.5 billion, mainly due to higher costs and damage charges as it set aside £309 million to take into account possible bad debts in the event of worsening global economic conditions. The figure includes a net fee of £35 million to prepare for the possible impact of Donald Trump's tariffs.

Earlier this week, HSBC reported a 25% drop in first-quarter profits, mainly due to the benefits of its sale of its banking operations in Canada and its entire division in Argentina during the same period last year. The bank also warned that the impact of tariffs, reported expected credit losses will rise by $200 million to $900 million in the first quarter.