NatWest said on Friday its private banking and wealth management arm generated £394 million of operating profit in 2025, up almost 50% from the year prior but a mere 5% of its total earnings. The bank this week said it would buy UK wealth manager Evelyn Partners for £2.7 billion, a deal that adds about £69 billion of client assets to its existing £58.5 billion. The bank beat out a bid from Barclays plc.
(Feb 13): UK retail bank NatWest Group plc has for years made most of its income from collecting interest on mortgages and other loans. It and many other banks want to change that by pushing further into wealth management, with its steady flow of fees.
But the tilt comes at a time when investors are hammering wealth manager stocks, as advances in artificial intelligence (AI) have ignited concern over whether such technology will render existing services unnecessary. The effort also hinges on a change in culture in the UK, where most people choose to save extra earnings rather than invest, and regulations.
