First quarter pretax profit 1.8 bln
Deposits fall 19.8 bln on prior quarter
Shares down 6 on cautious outlook

LONDON, April 28 Reuters British bank NatWest reported a 20 billion pound fall in deposits in the first quarter as consumers faced with a cost of living crisis forked out on steeper bills and shopped around for the best deals on their savings.

The bank39;s CEO Alison Rose said competition for savings amid higher Bank of England interest rates had stepped up and households and businesses feeling the squeeze from high inflation were drawing on savings and paying down some debts.

Despite a forecastbeating jump in profits, boosted by the higher rate environment, the bank39;s shares fell 6 as investors digested a third straight quarter of lower deposits and no upgrade to performance forecasts for the year.

Deposit levels at banks have come into sharper focus after the collapse of U.S. lender Silicon Valley Bank SVB last month sparked jitters across the global banking sector and highlighted how quickly customers can shift money in the digital era.

NatWest said the reduction in its deposits, however, mainly reflected the axing of its underperforming Irish arm Ulster and higher customer tax bills. Deposits across its consumer, business and private bank nonetheless fell 11.1 billion pounds.

A wellcapitalised and resilient balance sheet means we39;re a safe place for our customers, Rose said, adding that the outflows were not a response to the demise of SVB….