Against expectation, NatWest has mounted a creditable defence to hostile takeover bids from Bank of Scotland and Royal Bank of Scotland.

The shock approach from raiders north of the border has finally jolted the bank out of its complacency and underperformance. It estimates profits for last year will come in at the top end of forecasts, has moved to sell non-core assets including Ulster Bank and its investment arm, and announced an ambitious share buyback programme.

Whether it will be enough to win the day remains uncertain but it has forced Bank of Scotland to twice raise its offer and both it and Royal may yet bid higher before the deadline on Monday.

Dominic Coyle can be contacted at dcoyle@irish- times.ie