London, Feb 9, 2026, 08:43 GMT — Regular session.
- NatWest dropped close to 4% in early London hours, following the bank’s announcement of its £2.7 billion deal to buy Evelyn Partners.
- The bank rolled out a £750 million share buyback, though investors were more focused on the capital impact and the risks tied to integration.
- Investors looking for fresh direction on returns and capital are eyeing annual results, expected out Feb. 13, as the next immediate test.
NatWest Group Plc shares fell on Monday after the British bank struck a deal to acquire wealth manager Evelyn Partners. The move—unusual in its size—throws NatWest’s capital strategy into focus just days ahead of its annual results.
By 0829 GMT, shares had slipped 3.9% to 633.6 pence, dropping from the 657.2 pence opening print. Data from the exchange put Friday’s close at 659.4 pence. 1
This deal comes at a tricky time. Investors have come to expect capital returns as a key part of the NatWest equity narrative, with the bank’s annual results set for release Friday. 2
NatWest is pushing further into fee-based revenue, echoing a move by its peers as banks look for ways to steady profits against shifting rates. RBC Capital Markets analyst Benjamin Toms said he was “somewhat surprised” to see NatWest lead the pack, but described the deal as “transformational” for the bank’s affluent segment. 3
NatWest agreed to acquire Evelyn for £2.7 billion enterprise value, a move set to make it the UK’s biggest player in private banking and wealth management. Paul Thwaite, the chief executive, called the deal “a unique opportunity” to build out financial planning and investment offerings. Evelyn CEO Paul Geddes said the team was “delighted to join NatWest Group.” 4
The bank expects the deal to boost fee income by roughly 20% before factoring in any revenue synergies. It’s also aiming for about £100 million in yearly cost savings, though it estimates it will take around £150 million in spending to get there.
NatWest unveiled a £750 million buyback, though the deal is set to shave roughly 130 basis points from its CET1 ratio, the crucial metric for a bank’s core capital cushion.
The math behind capital was a driver in the initial share reaction. Expanding the wealth division offers more stable revenue, though it locks up capital and management attention. Investors, for their part, often want to see clear evidence of pricing restraint.
NatWest said Evelyn manages and administers roughly £69 billion in assets, with EBITDA hitting £179 million in 2025. The bank put the total for the combined wealth arm at £127 billion in assets under management and administration.
The risk is clear: if integration lags, cost cuts don’t materialize, markets sour, or assets under management shrink, the whole deal could stall. Add in the chance regulators take their time with sign-off, and shareholders may start rethinking what counts as “excess capital.”
