NatWest Group PLC has agreed to buy wealth manager Evelyn Partners for £2.7 billion and announced a £750 million share buyback.
The FTSE 100-listed bank said the acquisition would expand its private banking and wealth management arm to around 20% of group customer assets and liabilities, as well as increasing income from fees rather than lending.
Evelyn Partners oversees £69 billion of assets under management and administration. It provides financial planning, investment management and runs the BestInvest platform.
NatWest chief executive Paul Thwaite said: “Bringing together these two leading businesses creates a unique opportunity to provide financial planning, savings and investment services to more families and people across the UK.”
He added: “This represents a strategically and financially compelling use of capital, enhancing income diversification and strengthening returns in a high-growth segment, to deliver sustainable long-term value creation.”
Evelyn Partners generated £179 million of underlying profits (EBITDA) in the 2025 financial year. On that basis, NatWest is paying an enterprise value multiple of 9.7 times, including expected cost savings.
Annual run-rate cost benefits of about £100 million are expected, though one-off costs of around £150 million will be spent to achieve them.
Alongside the acquisition, NatWest announced a £750 million share buyback, though it said the Evelyn deal would still be more beneficial over time than using the money only for buybacks. Another share buyback announcement is likely alongside its interim results.
The acquisition will reduce the bank's CET1 capital ratio by about 130 basis points but that the group would remain well capitalised and the ordinary dividend payout ratio of around 50% of profits remains unchanged.
Completion is subject to regulatory approval and is expected in the summer of 2026.