NatWest reported a 24% increase in annual profit on Friday, exceeding forecasts and setting more ambitious performance targets as it expands its focus on Britain’s wealth management sector. The bank posted a 2025 pre-tax profit of £7.7 billion ($10.5 billion), up from £6.2 billion the previous year and slightly above the £7.5 billion average analyst forecast. NatWest now expects a return on tangible equity of more than 18% by 2028, up from its previous guidance of over 15% in 2027.
Chief Executive Paul Thwaite said the results reflect a sharpened strategic focus and “stretching new targets” as the bank continues its transformation into a simpler, more profitable domestic lender following the global ambitions of its RBS era, which ended in a government bailout during the 2008 financial crisis. Analysts noted that NatWest’s results highlight the bank’s commitment to boosting domestic profitability while expanding into higher-margin wealth management.
Shares of NatWest fell 0.5% following the announcement, having already gained 37% over the past year. Investors largely anticipated the revised profitability targets, especially after rival British banks such as Barclays and Lloyds recently announced upgrades. The UK banking sector has benefited from a stable, if slow-growing economy, resilient customers with low loan defaults, and a more supportive political and regulatory environment under the Labour government. Executive pay has also risen, with Thwaite’s total compensation increasing to £6.6 million in 2025 from £4.9 million the previous year.
NatWest’s wealth ambitions were underscored this week with its £2.7 billion acquisition of Evelyn Partners, one of Britain’s largest wealth managers. This represents the bank’s biggest deal since its 2008 bailout and forms a central part of its strategy to expand into the lucrative wealth management market. The bank also announced a £750 million share buyback for the first half of 2026, signalling continued returns to shareholders alongside investments in acquisitions and technology.
The bank’s assets under management and administration grew 20% over the year to £58.5 billion even before the Evelyn deal, reflecting growing momentum in a sector previously dominated by independent players such as St James’s Place. As income from traditional lending comes under pressure amid central bank rate cuts, NatWest and other UK banks are increasingly targeting wealth management as a higher-margin growth opportunity, combining acquisitions, technology investment, and capital returns to strengthen their market positions.
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