Despite a 7.7% drop in total income to £7.13 billion, NatWest’s pre-tax profit – at just over £3bn – beat expectations, driven by improved deposit margins and a reduction in impairment charges. The bank also increased its interim dividend from 5.5p by 9.1% to 6p.

Group chief executive Paul Thwaite said: “We have made good progress against our strategic priorities, taking decisive action to grow and simplify our business and to manage our capital and costs more efficiently.

“There has been growth across all three of our businesses, we have attracted over 200,000 new customers and our acquisition from Sainsbury’s Bank is expected to add around one million customer accounts on completion.

“We have also agreed to acquire £2.5bn of UK prime residential mortgages from Metro Bank plc, adding further scale to our retail banking business.”

He concluded: “The positive momentum and progress in the first half reflect the ambition across the bank to deliver its full potential.

“Our customers are beginning to feel more confident, with activity increasing and asset quality remaining strong, and we are well positioned to help unlock growth across the UK through our unrivalled regional network. Fundamentally, if we succeed with our customers, we will succeed for our shareholders and the wider economy.”