NatWest Group to Boost Wealth Management Powerhouse with £2.7 Billion Evelyn Partners Deal

NatWest Group PLC (LON: NWG) has revealed plans to purchase Evelyn Partners, a prominent player in wealth management, for a staggering £2.7 billion. This move aims to consolidate their standing in the private banking and wealth management arena across the UK.

The combined entity will oversee a hefty £127 billion in assets under management and administration, merging Evelyn Partners' £69 billion with NatWest's £59 billion portfolio. That's quite the fusion, creating what they claim to be the country's largest private banking and wealth management business.

NatWest's CEO, Paul Thwaite, highlighted this as a "unique opportunity" to extend financial planning, savings, and investment services to a broader range of UK clients. The acquisition is expected to increase NatWest's fee income by around 20%, prior to factoring in anticipated revenue synergies.

Other highlights include a projected £100 million in annual cost savings stemming from the deal, equal to roughly a tenth of the combined wealth management operations' expenses. However, these savings will require upfront investment, with implementation costs in the vicinity of £150 million.

Evaluating the deal, Evelyn Partners is being valued at a 9.7-times multiple of its forecasted 2025 EV to EBITDA, which includes these synergies. The firm posted EBITDA of £179 million in 2025, underlining its robust profitability before the acquisition.

Paul Geddes, Evelyn Partners' CEO, expressed enthusiasm about joining forces, noting a shared client-focused philosophy and a long history of reputable wealth management on both sides. The cultural fit appears to be a key factor, beyond just the financial metrics.

NatWest will finance the transaction through existing resources, which will come at the cost of a roughly 130 basis point dip in its CET1 ratio. Regulatory green lights are still pending, with the deal anticipated to wrap up in the summer of 2026.

In a simultaneous move, NatWest announced a £750 million share buyback program, signaling its intention to keep capital flowing back to shareholders even as it invests heavily in expanding its wealth management business. The dividend payout ratio remains steady at around 50% of profits attributable to the bank.

Long term, NatWest anticipates the acquisition will improve its Return on Tangible Equity within the first year, and deliver returns surpassing those from share buybacks. It's a calculated bet on the growth potential of private banking and wealth management in a market where size and service breadth tend to matter.

With a combined wealth management operation representing about 20% of NatWest Group's customer assets and liabilities after closure, it's a major addition. Whether this consolidation stands the test of market headwinds and evolving client demands will be something to keep an eye on as 2026 unfolds.