NatWest Evelyn Partners Acquisition Weighs on Shares
NatWest Evelyn Partners acquisition expands the bank's wealth franchise and prompted traders to weigh capital effects and a concurrent share buyback.
KEY TAKEAWAYS
- Deal values Evelyn Partners at £2.7 billion and lifts pro forma AUMA to £127 billion.
- The transaction reduces CET1 ratio by about 130 basis points while NatWest launches a £750 million buyback.
- Shares had fallen 4% as traders weighed the deal's capital effects ahead of upcoming earnings.
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NatWest Group announced on Feb. 9, 2026, that it had agreed to acquire Evelyn Partners, expanding its wealth-management footprint. The announcement prompted a 4% decline in NatWest shares as traders weighed the deal’s capital impact ahead of upcoming earnings.
Deal Terms and Capital Impact
NatWest said in a press release that it would acquire Evelyn Partners from funds advised by Permira and Warburg Pincus for an enterprise value of £2.7 billion, funding the transaction from existing resources. Evelyn Partners manages £69 billion in assets, which will combine with NatWest’s £59 billion in private banking and wealth assets under management (AUMA) to create a pro forma total of £127 billion. Pro forma customer assets and liabilities (CAL) would reach about £188 billion, raising private banking and wealth to roughly 20% of group CAL.
The bank expects annual run-rate cost synergies of about £100 million, roughly 10% of the combined wealth-management cost base, with implementation costs near £150 million. The deal will reduce NatWest’s Common Equity Tier 1 (CET1) ratio by about 130 basis points. Concurrently, NatWest launched a £750 million share buyback program.
The acquisition is expected to be accretive to return on tangible equity in the first year. NatWest forecasts fee income growth of about 20% before revenue synergies and plans to maintain an ordinary dividend payout ratio near 50% of attributable profits. The bank will consider further buyback decisions at its half-year 2027 results. Paul Thwaite, NatWest Group chief executive, said the deal offers a unique opportunity to extend financial planning, savings, and investment services to more families across the U.K.
Market Reaction and Valuation
NatWest shares fell 4% after the announcement as investors assessed the near-term capital effects. Secondary reporting cited Evelyn Partners’ fiscal 2025 EBITDA at £179 million and an implied 2025 enterprise-value-to-EBITDA multiple of 9.7 times, including target run-rate synergies.
The transaction remains subject to customary regulatory approvals, with closing targeted for summer 2026.
