NatWest is preparing to return to the US market more than a decade after withdrawing during the global financial crisis, marking a major new step in the British bank's international expansion.

The bank has received approval from the US Federal Reserve to establish a representative office in Connecticut, allowing it to strengthen relationships with American corporate clients and promote its financial services.

The move follows regulatory changes in the UK that have made it easier for major banks to expand internationally. NatWest has also been pursuing a more ambitious growth strategy, including its recent £2.7 billion acquisition of Evelyn Partners.

The bank previously had a much larger US presence but reduced its operations following the financial crisis. Its planned return comes as higher interest rates have helped improve profitability across Britain's major banking sector.

The US expansion could give NatWest a new source of international growth while strengthening its position among British banks competing for global corporate business.

The decision also reflects a wider shift in the UK's financial sector, with major lenders increasingly looking beyond the domestic market for growth opportunities.