Mr. NatWest Shares fell 9% on Monday after the company announced a 2.7 billion pound ($3.7 billion) deal to acquire Evelyn Partners, one of Britain’s biggest wealth managers.
The deal will double NatWest’s total assets under management from £59bn to £127bn, the British bank announced in a press release on Monday.
NatWest is looking to strengthen its wealth management services, saying its fee-based business can counter a fall in interest income due to lower central bank interest rates. Europe’s banking sector performed well in 2025, with stronger organic growth leaving many lenders with excess capital and raising expectations for an increase in M&A in 2026.
The stock was last down nearly 9% and up 62% in 2025, but is up just 1.2% so far this year.
NatWest stock price since the beginning of the year
“This transaction creates one of the UK’s leading private banking and wealth management businesses and provides us with the scale and capabilities we need to succeed in a market with significant growth potential,” NatWest Group CEO Paul Thwaites said in a release.
Paul Geddes, CEO of Evelyn Partners, added that the deal marks an “exciting new chapter” for the asset management company.
Sky News has reported that NatWest has outbid rival bank Barclays in recent days for a merger.
Evelyn Partners (formerly known as Tilney Smith & Williamson) provides financial planning, discretionary investment management, and direct-to-consumer platform BestInvest. It is currently owned by private equity firms Permira and Warburg Pincus.
The deal, which is expected to close by this summer but is still subject to customary regulatory approvals, will be funded from NatWest’s existing resources and reduce its core capital by 1.3%.
NatWest will report fourth quarter results on Friday and provide a strategic update.
