NatWest raised its guidance and launched a buyback after reporting second-quarter results that were supported by growth in lending, deposits and client assets.

The British lender now forecasts total income excluding notable items to exceed 16.0 billion pounds ($21.61 billion) for 2025. The revised outlook—which marks an improvement from a previous target at the high end of the 15.2 billion to 15.7 billion pound range—comes after its integration of Sainsbury’s Bank and as loan growth and structural hedges continue to mitigate the effect of interest-rate cuts by the Bank of England. This has allowed NatWest to continue to benefit from tailwinds in an environment of falling rates. Analysts had already anticipated a higher figure, with a company-compiled consensus pointing to 15.975 billion pounds for the year.