NatWest Profits Jump 25% & £2.7bn Evelyn Partners Deal

NatWest reported a 25 percent increase in pre-tax profits, reaching £7.7 billion last year, fueled in part by growth in its private banking and wealth division. This performance has paved the way for the bank’s largest acquisition in two decades: a £2.7 billion deal to acquire Evelyn Partners, one of Britain’s biggest wealth managers.

Profitability and Expansion

The bank’s total income for 2025 reached £16.6 billion, up from £14.7 billion the previous year. Pre-tax profits for the final quarter of 2025 were £1.9 billion, compared to £1.5 billion in the same period of 2024. NatWest also announced a £750 million share buyback programme planned for the first half of the year.

Executive Compensation and Bonuses

Chief Executive Paul Thwaite’s compensation rose to £6.6 million in 2025, compared to £4.9 million in 2024, following a relaxation of rules governing banker pay. This makes him the highest-paid CEO of the group since Stephen Hester earned £7.7 million in 2010. NatWest staff received £495 million in bonuses last year, an 11 percent increase.

Did You Know? NatWest’s previous largest acquisition was a £49 billion deal for ABN Amro before the financial crisis, which ultimately led to a £45.5 billion bailout and significant restructuring.

Looking Ahead

Analysts anticipated NatWest’s performance, expecting £7.5 billion in operating pre-tax profits and £16.5 billion in income for 2025. Despite meeting expectations, NatWest shares experienced a 1 percent decline in morning trading. The bank has upgraded its forecasts for return on tangible equity, now projecting over 18 percent in 2028, an increase from previous guidance of over 15 percent in 2027.

NatWest anticipates a £1.5 billion increase in income from structural hedging in 2026, followed by a further £1 billion increase in 2027. The acquisition of Evelyn Partners represents a strategic shift for NatWest, as banks seek to diversify income streams away from traditional lending, which is more vulnerable to interest rate fluctuations.

Market Reaction and Concerns

Since announcing the Evelyn Partners deal, NatWest shares have fallen nearly 10 percent, as some analysts have questioned the price paid. Broader concerns within the wealth management industry, stemming from competition with new AI-powered tax planning and advisory services, have also contributed to share declines.

Expert Insight: The pursuit of wealth management acquisitions reflects a broader industry trend toward fee-based income, which offers greater stability than traditional lending margins. However, integrating acquisitions and navigating emerging competitive pressures from AI-driven services present significant challenges.

Paul Thwaite attributed the recent share price fall to external factors, citing political disruption and economic commentary. He expressed confidence in the Evelyn Partners deal, describing it as the acquisition of a “strategic asset” with strong growth potential. Thwaite, who became CEO in 2023, has focused on simplifying the bank’s operations and improving risk management.

Legal Challenges

NatWest is also facing a class action lawsuit in New York related to tech company Oracle. The case concerns a bond offering NatWest’s market division helped underwrite in September 2025, where bondholders allege misleading information in offering documents regarding Oracle’s plans to increase debt for data center construction.

Frequently Asked Questions

What was NatWest’s pre-tax profit for last year?

NatWest’s pre-tax profits rose 25 percent to £7.7 billion last year.

How much is NatWest paying for Evelyn Partners?

NatWest is paying £2.7 billion to acquire Evelyn Partners.

What is NatWest’s projected return on tangible equity for 2028?

NatWest now expects to make a return on tangible equity of more than 18 percent in 2028.

Given these developments, how might evolving technologies reshape the future of wealth management services offered by institutions like NatWest?

NatWest Profits Jump 25% & £2.7bn Evelyn Partners Deal | FT