NatWest Sees 24% Profit Surge, Raises Targets

• NatWest acquired Evelyn Partners for 2.7 billion pounds, marking its largest deal since the 2008 government bailout, as part of its wealth management expansion strategy
• Assets under management and administration grew 20% to 58.5 billion pounds in 2025, even before the Evelyn Partners acquisition closed
• The bank increased its ambitious performance target to a return on tangible equity greater than 18% by 2028, up from previous guidance of greater than 15% by 2027

NatWest Posts Strong Results, Expands Wealth Management Strategy

Key Financial Results:

NatWest Group reported a 24% surge in annual pretax operating profit for 2025, reaching £7.7 billion ($10.47 billion), up from £6.2 billion in 2024. The results slightly exceeded analyst expectations of £7.5 billion.

Strategic Targets Raised:

The British bank significantly upgraded its performance outlook, now targeting a return on tangible equity (RoTE) exceeding 18% by 2028, up from previous guidance of greater than 15% by 2027. CEO Paul Thwaite emphasized the bank's "stretching new targets" and sharpened strategic focus.

Major Acquisition:

NatWest announced its largest deal since the 2008 financial crisis bailout—the acquisition of Evelyn Partners for £2.7 billion. The move represents a major push into Britain's wealth management sector, a market British banks are increasingly targeting as lending income declines amid central bank rate cuts.

Wealth Management Growth:

Assets under management and administration grew 20% to £58.5 billion in 2025, excluding the Evelyn Partners acquisition. The bank also announced a £750 million share buyback program.

Market Context:

British banks are pivoting toward wealth management services, entering a crowded market previously dominated by independent providers like St James's Place. This shift comes as traditional lending margins compress due to recent rate cuts by central banks.

Market Implications:

The strong results and ambitious targets signal NatWest's confidence in its strategic transformation and ability to compete in the high-margin wealth management space, potentially setting a benchmark for other UK banks pursuing similar strategies.