NatWest Group to Buy Evelyn Partners for £2.7B, Targets UK’s Top Private Bank and Wealth Manager

Core Viewpoint - NatWest Group is acquiring Evelyn Partners for GBP 2.7 billion in cash to create the UK's leading private bank and wealth manager, combining their assets under management to reach GBP 127 billion [4][8][5] Financial Performance - Evelyn Partners reported 2025 income of GBP 509 million and EBITDA of GBP 179 million, reflecting a 35% margin, along with net new inflows of GBP 1.6 billion [2][7] - The acquisition is expected to boost NatWest's fee income by approximately 20% before synergies, enhancing non-interest income as a larger part of group revenues [8][7] Strategic Intent - The acquisition aims to accelerate NatWest's strategy by increasing its exposure to wealth management, supported by demographic, regulatory, and technology trends [3][5] - Evelyn brings a regional network of 21 offices, 270 financial planners, and 325 specialist investment managers, along with the direct-to-consumer platform Bestinvest [3][8] Synergies and Cost Management - NatWest anticipates about GBP 100 million in cost synergies, primarily through the elimination of duplication in shared services and technology, with implementation costs estimated at GBP 150 million over three years [6][9] - The integration plan includes technology and platform consolidation, streamlining functions, and optimizing marketing spend [10][9] Capital Impact and Returns - The acquisition is projected to reduce NatWest's CET1 ratio by approximately 130 basis points, driven mainly by goodwill and other intangibles [12][13] - Management expects the deal to be accretive to return on tangible equity in the first year, with returns anticipated to exceed those from share buybacks [13][14] Shareholder Actions - Alongside the acquisition announcement, NatWest is launching a GBP 750 million share buyback while maintaining a dividend payout ratio of around 50% [14][6]