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NatWest Group’s chief executive has warned the government against increasing taxes on banks in the autumn budget as the high street lender reported a 30% jump in profits.

Paul Thwaite said he understood the “difficult choices” that the chancellor, Rachel Reeves, had to make in order to help close a potential £30bn shortfall in the public finances but argued she needed to “balance fiscal discipline” with “policies that create stability, consistency and support growth”.

Twaite said on a call with journalists on Friday: “I think the government should be thoughtful about signals it sends to investors who are looking at the UK as a long-term home for capital.”

His comments came as NatWest reported a strong jump in profits, which grew 30.4% to £2.18bn in the three months to the end of September, from £1.67bn during the same period last year.

“My view remains that strong economies need strong banks, and I really want to use the capital of the bank to support our customers,” Thwaite said. “You can see in our numbers today, we’re providing a lot of capital to those who are buying houses or moving houses, a lot of capital to businesses … So I think it’s important that strong domestic banks are the backbone of the UK, and the best way to use our capital is to support customers.”

The once bailed-out bank – which shed its final UK government stake earlier this year – said it was upping its full-year profitability and income guidance. It now expects income for 2025 to come in at £16.3bn, excluding notable items, solidifying previous forecasts for income greater than £16bn. Shares rose 2.9% on Friday morning, making the bank one of the biggest risers on the FTSE 100.

Thwaite’s warnings come amid speculation over a number of potential tax increases, including on banks, property and landlords’ rental income, which could help the chancellor shore up the public finances in the budget on 26 November.

Major UK bank stocks tumbled in August amid fears that the government could follow recommendations by the Institute for Public Policy Research, a thinktank, to introduce a new tax on the banking sector. That tax would help recover “windfalls” enjoyed by lenders as a result of an emergency economic policy known as quantitative easing that was put in place after the 2008 financial crisis.

Thwaite echoed comments by high street bank peers including the Lloyds chief executive, Charlie Nunn, who previously said a rise in bank taxation “wouldn’t be consistent” with the chancellor’s overtures as the government pushes to reboot growth.

Labour has placed financial services among its eight key sectors to receive government backing in its industrial strategy, while industry lobbyists have warned that the UK could lose business and make its financial services less competitive compared with other hubs including the US.

Thwaite said: “I’ve been encouraged by what the chancellor and government have said and about how they see the role of financial services and banks in helping support that growth agenda. I do welcome those comments from NatWest’s perspective. I want us to play our part. Those messages have resonated well with investors. They have supported confidence in the sector.”