NatWest Group chief executive Paul Thwaite has said there are signs of growing confidence among Scotland’s mid-market firms, with travel, tourism, technology and telecoms showing encouraging improvement despite ongoing economic pressures.
Speaking during a two-week visit to Scotland, which will include stops in Aberdeen and Orkney, Mr Thwaite said the bank’s latest business monitor — based on data from more than 100,000 Scottish business accounts — showed “pockets of optimism” in key sectors, although manufacturing continues to report negative figures.
“Scotland is hugely important to NatWest Group,” said Mr Thwaite. “We have two million retail customers, one in three businesses and almost a third of our UK staff here. We’re very committed to supporting growth.”
Royal Bank of Scotland, which operates as part of NatWest Group, employs 11,500 people north of the border. Mr Thwaite, a former Edinburgh-based banker married to a Fifer, stressed the bank’s commitment to a visible presence in communities, with 68 branches and mobile banking vans.
While AI is already being deployed to reduce fraud and free up staff for customer-facing work, Mr Thwaite said physical banking would remain vital. “The successful banks of the future will combine a strong physical presence with excellent digital services,” he said.
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The group’s first-half results showed an 18% rise in pre-tax operating profit to £3.6bn, with further acquisitions likely following recent deals involving Sainsbury’s Bank and Metro Bank. However, Mr Thwaite said growth would be “disciplined” and acquisitions would need to outperform internal investment opportunities, such as technology upgrades.
He also urged government to ensure policy decisions encourage growth. “The role of business and financial services needs to be at the heart of the growth agenda,” he said. “Our job is to support businesses with ambitions, and the policy environment should reflect that.”
The visit comes ahead of RBS’s 300th anniversary in 2027, with plans already under way to celebrate its heritage while looking to the future.
