NatWest Group PLC has reached an agreement to acquire wealth manager Evelyn Partners for an enterprise value of £2.7 billion, a move the bank says will form the largest Private Banking and Wealth Management business in the UK.
The transaction will merge Evelyn Partners’ £69 billion of assets under management (AUM) with NatWest’s £59 billion, producing combined assets under management and administration of £127 billion. Alongside the acquisition, NatWest announced a £750 million share buyback as part of its ongoing capital returns to shareholders.
NatWest Chief Executive Paul Thwaite said the transaction "creates a unique opportunity to provide financial planning, savings and investment services to more families and people across the UK." The bank projects that fee income will increase by roughly 20% before any revenue synergies are realised, and that the group will gain greater exposure to a high-growth, capital-light segment.
Following completion, Private Banking and Wealth Management are expected to account for about 20% of group customer assets and liabilities. NatWest has quantified anticipated annual run-rate cost synergies of about £100 million - roughly 10% of the combined wealth management cost base - and expects to incur implementation costs of around £150 million to deliver them.
The deal values Evelyn Partners at 9.7 times its 2025 EV to EBITDA multiple, a figure that incorporates the target run-rate cost synergies. Evelyn Partners reported £179 million in EBITDA for the full year 2025.
Paul Geddes, Chief Executive of Evelyn Partners, commented: "We are delighted to join NatWest Group, which marks an exciting new chapter for Evelyn Partners. We both have a long-standing history as highly regarded wealth managers with a client-centric culture."
NatWest said the acquisition will be funded from existing resources and that it expects the transaction to reduce its Common Equity Tier 1 (CET1) ratio by approximately 130 basis points. The deal remains subject to regulatory approvals and is anticipated to close in summer 2026.
On returns, the bank projects the acquisition will be accretive to its Return on Tangible Equity in the first year of ownership and that it will deliver returns greater than those achieved through a share buyback. The ordinary dividend payout ratio remains broadly unchanged at around 50% of attributable profits, and NatWest indicated the next share buyback update will be provided with its H1 2027 results.
Key points
- NatWest agreed to acquire Evelyn Partners for £2.7 billion enterprise value, creating the largest UK private banking and wealth business.
- The combined business will manage and administer £127 billion of assets, incorporating £69 billion from Evelyn Partners and £59 billion from NatWest.
- NatWest announced a £750 million share buyback and expects the deal to lift fee income by about 20% before revenue synergies, while targeting £100 million of annual cost synergies with £150 million of implementation costs.
Risks and uncertainties
- Regulatory approval is required for the transaction to proceed; the deal is subject to such approvals and is expected to close in summer 2026.
- The acquisition will reduce NatWest’s CET1 ratio by around 130 basis points, affecting the bank’s capital position.
- Realising the targeted £100 million of run-rate cost synergies depends on successful integration and will require approximately £150 million of implementation spending.
This transaction is positioned as a strategic push into a capital-light segment of financial services, with NatWest citing immediate accretion to tangible returns and a material uplift in fee-based income. The bank intends to fund the purchase from existing resources and to continue returning capital to shareholders through an announced buyback and a steady dividend payout ratio.
Execution risks identified by the bank include obtaining regulatory clearances, managing the one-off costs tied to integration, and offsetting the near-term impact on CET1 capital. Beyond those items, NatWest has signalled confidence that the combination will strengthen its customer-facing wealth and private banking capabilities and contribute to diversified revenue streams.