British bank NatWest said on Friday that it rebounded into net profit in the first half as the UK economy extended its recovery from the COVID-19 pandemic.

Profit after taxes hit £1.8 billion (€2.2bn) in the six months to June, it said in a results statement. That contrasted with a net loss of £705 million a year earlier when it took a massive hit from the erupting virus crisis.

This year’s first-half performance was however boosted by the release of impairment provisions due to the improved economic outlook with fewer loans expected to sour.

Due to the improved economic outlook fewer loans [are] expected to sour

“I am pleased that we are reporting a strong and resilient performance for the first half,” said chief executive Alison Rose in comments accompanying the release. “As we have updated our economic assumptions, and with defaults remaining low, we have also made an impairment release of £707 million in the first half.”

NatWest’s results come after rivals Barclays and Lloyds also posted first-half profits on lower-than-expected credit losses. Both lenders also cited the improving economic outlook, after Britain’s speedy vaccination drive enabled the full reopening of England’s economy last week.

“Whilst we see the potential for a more rapid recovery, we will continue to take an appropriate and conservative approach as the government schemes wind down and the economy reopens,” added Rose on Friday.

“These results have been driven by strong operating performances across our group, underpinned by a well-diversified loan book.”