NatWest Group CEO Paul Thwaite says Scotland’s mid-market businesses are showing signs of renewed confidence, with travel, tourism, and technology leading the way despite pressures from higher payroll taxes and the minimum wage.
Citing data from the bank’s monthly business monitor, which draws insights from more than 100,000 Scottish business accounts, Thwaite noted that while manufacturing remains weak, sectors like telecoms are gaining momentum.
During a two-week visit to Scotland, Thwaite met customers and staff across major cities and remote areas like Orkney. Highlights included a tour of Scottish Power’s Whitelee wind farm and a session with Glasgow start-ups at NatWest’s business accelerator. However, some entrepreneurs said they must still go to London for funding, echoing criticism that NatWest’s decision to rebrand from Royal Bank of Scotland reflects a London-centric approach.
Thwaite, who has Scottish ties through his family and career, countered by pointing out the bank’s significant local presence — two million retail customers, one in three Scottish businesses, and almost a third of UK staff.
Looking ahead, the bank plans to celebrate RBS’s 300th anniversary in 2027, balancing heritage with modernisation. Thwaite, who took the top job in 2023 after Dame Alison Rose’s resignation, has focused on disciplined growth, simplification, and risk management. NatWest’s latest half-year results showed an 18% profit rise to £3.6bn, lifting its share price and boosting Thwaite’s potential earnings toward £7.8m.
Reflecting on the 2008 financial crisis, Thwaite stressed his commitment to safe, informed banking to avoid repeating past mistakes. The UK government’s recent sale of its final NatWest shares, once 82% of the bank, marked a symbolic milestone, though it also increases the bank’s exposure to takeover bids.
He also discussed the role of AI in banking, describing it as a tool to automate routine tasks, combat fraud, and free up staff to engage more with customers. While a temporary block on further branch closures remains, NatWest still operates 68 branches in Scotland plus mobile banking vans, which Thwaite sees as essential to community presence.
With visits planned to Aberdeen and Orkney’s mobile branch, Thwaite said many customers are concerned about future tax increases. His message to Chancellor Rachel Reeves was clear — financial services must be central to the UK’s growth strategy, and banks should be empowered to support businesses with strong expansion ambitions.https://www.cnbc.com/video/2025/07/25/this-was
