Natwest Bank, a major UK lender, reported a 12% increase in pre-tax profits, reaching £2 billion for the first quarter, supported by higher interest rates that boosted revenues to £4.4 billion. This performance surpassed analysts' expectations of £1.9 billion in profits. The bank's net interest margin improved to 2.47%, up from 2.27% a year earlier. Despite these positive results, Chief Executive Paul Thwaite highlighted a cautious outlook due to the ongoing Iran war, which has led to concerns about stagflation. Natwest has revised its income forecast for the year to between £17.2 billion and £17.6 billion. The bank has set aside £140 million to address the potential economic fallout, anticipating inflation to peak above 3.5% and projecting economic growth to slow to 0.4% with an unemployment rate rising to 5.7%. Shares of Natwest fell 3.7% to 563.6p following the announcement, reflecting investor concerns about the broader economic impact.