Q1 profit 1.2 billion pounds, up 41
Tougher times loom as inflation squeezes customers
Income boosted by buoyant housing market

LONDON, April 29 Reuters British lender NatWest posted a 41 jump in firstquarter profit on Friday, as rising rates boosted income even as they threaten to further squeeze household incomes.

While banks have benefitted from the end of COVID19 lockdowns and higher benchmark rates, NatWest CEO Alison Rose said she was very aware of the challenges and concerns the costofliving crisis is causing.

The lender reported a pretax profit of 1.2 billion pounds 1.50 billion, up from 885 million a year earlier and restated to exclude the Irish business it has exited.

That topped the 755 million expected by analysts in a poll compiled by the bank and was lifted by a 15 increase in income to 3 billion pounds, with lending boosted by Britain39;s buoyant housing market.

NatWest shares were up 1 at 0705 GMT.

The bank maintained its economic forecasts, which will be updated later in year, but could be acutely exposed to any slowdown as one of Britain39;s largest lenders and its biggest business bank.

In the first quarter NatWest released 38 million pounds of cash that had been set aside for potential defaults.

Rivals Barclays, Lloyds and HSBC all warned this week of potential damage to their finances from inflation, which has been heightened by the impact of war in Ukraine. 

Like its peers, the bank39;s core capital ratio fell significantly, to 15.2 from…