NatWest share price slides nearly 5% after £2.7bn Evelyn Partners deal and fresh buyback

London, Feb 9, 2026, 10:24 GMT — Regular session in progress.

• NatWest slipped 4.9% after striking a £2.7 billion deal to acquire wealth manager Evelyn Partners.
• NatWest rolled out a £750 million share buyback, announced right along with the deal.
• NatWest’s annual results land Feb. 13, and investors are watching for any signals on guidance and capital strategy.

Shares of NatWest Group plc (NWG.L) dropped 4.85% to 627.4 pence in delayed trading on Monday, following news that the bank will acquire Evelyn Partners, a wealth manager, in a £2.7 billion deal. NatWest unveiled a £750 million share buyback alongside the purchase. The stock had closed at 659.4 pence on Friday. 1

This is a significant move for a UK bank that’s spent years trimming risk and cutting expenses. For NatWest, it’s the largest deal since the 2008 state bailout—coming just as investors get ready for annual results later this week.

For lenders, the timing is tricky. As central banks cut rates, net interest income—the difference between what banks make on loans and shell out on deposits—comes under strain. That squeeze is sending banks scrambling for more stable fee revenue streams in wealth and asset management.

NatWest said snapping up the business would push its private banking and wealth management arm to the top spot in the UK, boosting assets under management and administration to £127 billion. The purchase is being paid for with existing funds. The bank expects its core equity tier 1 (CET1) ratio—a closely watched gauge of capital strength—to take a hit of roughly 130 basis points. 2

Paul Thwaite, chief executive, described the deal as “a unique opportunity” to push financial planning and investment services out to NatWest’s 20 million customers. For Evelyn Partners, CEO Paul Geddes called the sale “an exciting new chapter” for the wealth manager.

NatWest is taking a stake in what it calls a capital-light business—less reliance on the balance sheet compared to standard lending, according to the bank. Evelyn posted 2025 EBITDA of £179 million, NatWest noted. The acquisition puts Evelyn at a 9.7x multiple on 2025 EV/EBITDA, a ratio that sets enterprise value (debt included) against EBITDA.

NatWest is targeting run-rate cost savings of about £100 million annually, though it’s set to spend around £150 million to get there. The company added that fee income should jump roughly 20% even before factoring in possible revenue synergies from cross-selling products across customer bases.

Some analysts liked the strategic rationale but balked at the price tag and pressure on capital. RBC Capital Markets analyst Benjamin Toms admitted, “We are somewhat surprised that NWG appear to have come out on top,” and called the deal “transformational” for filling a gap in NatWest’s upscale wealth segment. Over at Jefferies, analysts flagged the valuation as steep, estimating it could drag earnings per share down by about 2% through 2028 compared to skipping the deal. 3

NatWest said Evelyn Partners manages and oversees roughly £69 billion in client assets, counting the BestInvest platform among its offerings. The business is being sold by funds advised by Permira and Warburg Pincus. NatWest expects to finalize the deal in the summer of 2026, pending regulatory sign-off.

It’s a clear risk: integration could stall, and for wealth managers, staff retention is everything. If advisers leave, assets don’t stick around. On top of that, a broader market setback can chill client engagement, squeezing fee income right when NatWest is counting on it more.

NatWest’s ordinary dividend payout ratio sticks at roughly 50% of attributable profits, with no plans to adjust that figure. The bank is holding off on its next share buyback announcement until H1 2027 results, leaving that milestone further out. In the near term, attention is fixed on NatWest’s annual results coming up Friday, Feb. 13. Investors will be scanning for fresh guidance on capital, returns, and what the acquisition means for the path ahead. 4