The robust performance follows a similar trend observed at rival bank Barclays, which posted its largest quarterly profit in over a decade.

Despite customers withdrawing nearly £20bn from their accounts during Q1, partly due to the bank’s exit from the Republic of Ireland, Natwest’s total income rose by over a third.

This surge was fueled by higher interest rates, which made borrowing more expensive. Excluding the Ireland exit, £11bn flowed out of the bank, accounting for 2.6% of total deposits. This outflow was attributed to higher tax payments, competition for better savings rates, and market volatility.

Chief executive, Alison Rose, said: “NatWest Group’s strong performance in Q1 2023 is underpinned by our robust balance sheet, our high levels of capital and liquidity and our well-diversified loan book.

“Through a period of significant macro disruption and uncertainty, we continue to stand alongside the people, families and businesses we serve, providing targeted support and growing our lending responsibly.

“Our disciplined and consistent approach to risk management means that arrears and impairments remain low. By monitoring customer behaviour and looking closely for signs of financial distress, we are able to put in place proactive measures to help those who are struggling right now and those who are worried about the future.

“As we continue to make progress against our strategic priorities, NatWest Group is well positioned to navigate this challenging operating environment and to deliver sustainable growth and returns by responding to new and emerging trends that are shaping the lives of our customers.”