Highlights

  • NatWest Group shares declined by 5.28% on 9 February 2026, despite a positive acquisition update.
  • NatWest Group agreed to acquire Evelyn Partners for a GBP 2.7 billion enterprise value.
  • Evelyn Partners oversees GBP 69 billion of assets under management and administration.
  • Combined Private Banking and Wealth Management assets are expected to reach GBP 127 billion.
  • NatWest announced a new GBP 750 million share buyback alongside the acquisition.
  • The transaction is expected to complete in summer 2026, subject to regulatory approvals

NatWest Group plc (LSE:NWG) shares were trading lower by 5.28% to GBX 624.60 during the morning session on 9 February 2026, although the share price has surged by 41.50% over the past year. Today’ decline came despite the bank releasing a positive strategic update regarding a major acquisition and a new capital return initiative, highlighting a disconnect between short-term market reaction and the nature of the announcement.

NatWest Group confirmed it has reached an agreement to acquire Evelyn Partners from funds advised by Permira and Warburg Pincus. The transaction values Evelyn Partners at a GBP 2.7 billion enterprise value.

Evelyn Partners is a UK-based wealth manager with more than 180 years of operating history and oversees GBP 69 billion of assets under management and administration. Its services include financial planning, discretionary investment management, and a direct-to-consumer investment platform.

Once completed, the acquisition will combine Evelyn Partners’ assets with NatWest Group’s existing private banking and wealth management business, lifting total assets under management to approximately GBP 127 billion. Total customer assets and liabilities across the combined platform are expected to reach GBP 188 billion.

Strategic and Financial Framework

The transaction is expected to increase fee-based income for NatWest Group by approximately 20% before revenue synergies. Private Banking and Wealth Management is projected to account for around 20% of the group’s customer assets and liabilities following completion.

Evelyn Partners generated full-year 2025 EBITDA of GBP 179 million, with the acquisition implying a valuation multiple of 9.7 times 2025 EV to EBITDA, including targeted cost synergies.

NatWest estimates annual run-rate cost synergies of around GBP 100 million, with associated costs to achieve of approximately GBP 150 million. The transaction will be funded from existing resources and is expected to reduce the group’s CET1 ratio by around 130 basis points.

Completion is subject to regulatory approvals and is expected in summer 2026.

Capital Return Update

Alongside the acquisition announcement, NatWest Group confirmed a new GBP 750 million share buyback. Following completion of this programme, the group expects its next share buyback announcement to coincide with its H1 2027 results.

The ordinary dividend payout ratio of around 50% of attributable profits remains unchanged.

Investor Takeaway

NatWest Group’s announcement on 9 February 2026 outlined a large-scale acquisition in UK wealth management alongside a fresh capital return programme. While the share price moved lower during the session, the update detailed a shift toward increased fee income, expanded wealth management exposure, and continued shareholder distributions through buybacks and dividends.

Frequently Asked Questions (FAQs)

  1. What is NatWest Group acquiring?

NatWest Group has agreed to acquire Evelyn Partners, a UK-based wealth manager offering financial planning, discretionary investment management, and a direct-to-consumer platform.

  1. How is the acquisition being funded?

The transaction will be funded from NatWest Group’s existing resources and is expected to reduce the CET1 ratio by approximately 130 basis points.

  1. What capital return has NatWest announced?

NatWest Group announced a GBP 750 million share buyback, while maintaining its ordinary dividend payout ratio of around 50% of attributable profits.