NatWest Group PLC (LSE:NWG) said it expects to lift fee income by about 20%, improve returns and increase its exposure to the UK wealth market after completing its £2.7 billion acquisition of Evelyn Partners.
The FTSE 100 lender said the deal completed on 30 June, creating the UK’s biggest private banking and wealth management business.
As of the end of last year, Evelyn has £69 billion of assets under management and administration, while NatWest’s was £59 billion, creating an enlarged business of around £127 billion of assets at that date.
NatWest said the deal would increase fee income by about 20% before any revenue benefits from combining the businesses. It also expects annual cost savings of about £100 million, with one-off costs of about £150 million to deliver them.
By expanding its presence in the higher-growth wealth market, the acquisition is expected to add 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.”
He said more detail on the impact on full-year guidance would be given with interim results on 31 July.
The deal is expected to reduce NatWest’s CET1 capital ratio by about 130 basis points. This measure of financial strength stood at 14.3% at the end of the first quarter.
