NatWest Group PLC (LSE:NWG) has completed its £2.7 billion acquisition of Evelyn Partners, creating the UK’s largest private banking and wealth management business.
The deal closed on 30 June, marking a significant shift in the competitive landscape of UK wealth management and private banking.
NatWest said the acquisition is expected to lift fee income by approximately 20% before any revenue benefits from combining the two businesses are factored in.
The bank also anticipates annual cost savings of around £100 million, though it expects one-off costs of approximately £150 million to deliver those savings.
Evelyn Partners held £69 billion of assets under management and administration at the end of last year, while NatWest’s equivalent figure stood at £59 billion.
The combined business therefore holds around £127 billion of assets, based on figures from the end of last year, establishing it as the clear market leader in UK private wealth.
By expanding into the higher-growth wealth market, the acquisition is expected to contribute to NatWest’s growth and return on tangible equity in the first year of ownership.
Chief executive Paul Thwaite said: “Together, we are now the UK’s leading Private Banking and Wealth Management business.”
Thwaite added that further detail on the full-year guidance impact would be provided alongside interim results scheduled for 31 July.
The transaction is expected to reduce NatWest’s CET1 capital ratio by around 130 basis points, a measure of financial strength that stood at 14.3% at the end of the first quarter.
The CET1 reduction reflects the scale of the acquisition but analysts will be watching closely to see how quickly the bank can rebuild that buffer through earnings.
NatWest’s move into wealth management at this scale signals a broader strategic push by the FTSE 100 lender to diversify revenues beyond traditional retail and commercial banking.