NatWest Group reported a 20% increase in profits for the first half of the year, reaching £4.3 billion. This growth mirrors the positive trend seen by other major banks such as Barclays and Lloyds. Barclays announced a pre-tax profit surge to £6.1 billion for the same period, while Lloyds also saw a significant rise in earnings to £4.3 billion.
The Trade Union Congress (TUC) emphasized the need for higher taxes on bank profits in response to these financial results. TUC General Secretary Paul Nowak highlighted concerns over the disparity between bank profits and the financial struggles faced by ordinary citizens due to rising mortgage costs and utility bills.
The current bank surcharge, set at an additional 3% corporation tax on banking profits exceeding £100 million, was reduced from 8% in 2023. The TUC estimates that reverting to the previous 8% rate could generate £9 billion over four years, with even higher rates potentially yielding significantly more revenue.
NatWest attributed its profit growth to increased lending and deposits, along with improvements in cost efficiency. The bank expressed confidence in its future financial performance, citing strategic investments in customer service and technological advancements.
Amidst economic uncertainties, including ongoing global conflicts and energy price fluctuations, the Bank of England maintained interest rates at 3.75%. Inflation, currently at 2.6%, is expected to rise to around 3.2% later in the year if geopolitical tensions persist and energy costs remain high, surpassing the Bank of England’s 2% target.
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