British bank NatWest on Friday said its net profit jumped 35 percent in the third quarter, lifted by higher revenues and lower costs.

Profit after tax climbed to £1.17 billion ($1.52 billion) in the three months to the end of September compared with to the previous year, the lender said in a statement.

"The strength of... performance is underpinned by the support we provide to our 19 million customers in every nation and region of the UK," added NatWest chief executive Paul Thwaite.

"With customer activity increasing, defaults remaining low and optimism amongst businesses and consumers, we are well placed to succeed with our customers and for our shareholders in the months and years ahead."

Following the announcement, shares in the bank jumped nearly five percent, making it the biggest riser in early trading on London's top-tier FTSE 100 index, which was steady overall.

"The stars have been aligning for NatWest and this latest quarter has added to the growing momentum, prompting another upgrade to its guidance for the full year," noted Richard Hunter, head of markets at traders Interactive Investor.

NatWest revenue rose seven percent to £3.7 billion in the reporting period, while costs dropped more than five percent.

In the third quarter, it announced a deal to acquire a portfolio of residential mortgages from smaller UK rival Metro bank worth a combined £2.5 billion.

"Throughout the third quarter... we have grown our lending, helping customers to buy or remortgage their homes or to start and grow their businesses," Thwaite added Friday.

NatWest, formerly known as Royal Bank of Scotland, remains around 15-percent owned by the UK government following a state bailout triggered by the 2008 global financial crisis.

HSBC rounds off the current earnings updates from Britain's major banks when it reports Tuesday, one day before the country's new Labour government unveils its maiden budget and there are rumours that it could announce a windfall tax on lenders.

Barclays on Thursday said its net profit jumped 23 percent in the third quarter, helped by improved performance at its core UK and investment divisions.

Lloyds Banking Group this week revealed a drop in profits after tax but its results, like Barclays and NatWest, were better than expected.