The high street bank also reported as strong first quarter profit with operating profit before tax for the three months of £1.8bn, up from £1.3bn for the same period in 2024 and above average analyst forecasts of £1.6bn.

Commenting on the results Natwest chief executive Paul Thwaite said: “Our strong first quarter performance demonstrates the positive momentum in our business as we deliver against clear strategic priorities, and we now expect to be at the upper end of our income and returns guidance for 2025.”

He added: “This performance is underpinned by continued growth across our three businesses and the support we provide to over 19 million customers, whether that is buying a home, growing a business or investing their money.”

The results come as the major high street lender prepares to return to full private ownership for the first time since it was bailed out by the government during the 2008 financial crisis.

In March last year the shareholding fell below 30%, meaning the government was no longer classed as a “controlling shareholder”

At the end of January this year the Treasury sold a further slice of NatWest stock, reducing the taxpayer’s stake in the high street bank to just under 8% and it has since reduced this to below 2% from a share sale on 1 May. Chancellor Rachel Reeves bids to fully exit the holding by 2025-26.

Earlier this week Lloyds Banking Group posted a £4.8bn rise in mortgage lending in the first three months of the year compared to the previous quarter, driven by “significant demand ahead of the stamp duty change”.

And Santander UK saw its gross mortgage lending almost double to £5.8bn in the first three months of the year compared to a year ago.