Full Breakdown
NatWest Accelerates Cost-Cutting Programme, Cuts 1,400 Jobs While Reporting Higher Profits
By Drooid · · How we work
In this breakdown
01
Efficiency Drive and Job Reductions
NatWest Group announced that its ongoing efficiency programme has eliminated roughly 1,400 positions in the current year, including about 1,000 full-time roles in the most recent quarter. The cuts are part of a broader restructuring aimed at creating a “leaner, more technology-focused bank,” according to chief executive Paul Thwaite. The bank also noted that the acquisition of wealth manager Evelyn Partners added approximately 2,200 staff, offsetting the net headcount decline.
02
Financial Impact
For the three months to September, NatWest reported pre-tax operating profit of £2.2 billion, a rise of about 2 % versus the same period a year earlier. Net interest income grew nearly 9 % year-on-year to roughly £3.6 billion, reflecting higher earnings on loans relative to deposit costs. The efficiency programme has already delivered cost savings estimated at £420 million, reducing the cost-to-income ratio to 45.7 % for the year to date.
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03
Workforce Changes and Technology Investment
Trials of an AI-powered spending-insights assistant and a fraud-detection agent for credit-card customers are cited as examples of the bank’s technology-driven approach. Thwaite described AI as “pervasive across the organisation” and argued that its use benefits both customers and employees.
04
Official Statements from Leadership
In a statement, Thwaite said the economy shows “good resilience,” noting that customer data indicate continued spending on travel, holidays and accommodation despite higher fuel prices. NatWest data reveal that customers are spending about 20 % more annually on fuel while purchasing 10 % fewer litres. The lending book expanded in the third quarter, driven primarily by increased mortgage balances and remortgaging activity, although demand from new buyers showed a modest decline.
05
Broader Implications
NatWest’s cost-cutting and technology push mirrors similar moves by peers such as Lloyds and Barclays, which have also reported stronger income amid high interest rates. The bank’s challenge, as highlighted by its chief executive, is to translate the efficiency gains and AI investments into sustained profitability while maintaining service quality for customers and managing the impact of a shrinking workforce.