NatWest Group PLC has finalized its £2.7 billion acquisition of Evelyn Partners, a deal which closed on June 30, 2026. This acquisition is significant as it establishes NatWest as the UK's leading private banking and wealth management business, combining Evelyn's £69 billion of assets under management with NatWest's £59 billion, to reach a total of approximately £127 billion. This move is expected to increase NatWest's fee income by about 20% and contribute to an improved return on tangible equity in the first year of ownership.
The strategic rationale behind this acquisition is to expand NatWest's presence in the high-growth wealth market and diversify its income streams, reducing exposure to interest rate fluctuations that impact traditional lending. CEO Paul Thwaite highlighted that this deal creates a "third growth engine" for the group. The acquisition also aims to leverage Evelyn Partners' focus on mass affluent and professional classes, complementing NatWest's existing high-net-worth offering through Coutts.
While the deal is anticipated to generate £100 million in annual cost savings, it will incur one-off integration costs of about £150 million. The acquisition will also reduce NatWest's CET1 capital ratio by approximately 130 basis points from its first-quarter standing of 14.3%. Despite the substantial price tag and an initial 8% drop in NatWest's share price post-announcement, finance boss Katie Murray maintained that the bank had not overpaid, expecting returns to exceed those from share buybacks, though future share purchase programs are on hold until the first half of 2027.
