NatWest’s shares fell nearly 5% in early market moves on Monday after the company announced a £2.7 billion ($3.7 billion) deal to acquire one of the U.K.’s largest wealth managers, Evelyn Partners.
The deal will see NatWest double its total assets under management to £127 billion, up from £59 billion, the British bank said in a press release Monday.
NatWest is looking to boost its wealth management services as fee-based businesses can help counter a decline in interest income from falling central bank rates. Europe’s banking sector thrived in 2025, as stronger organic growth left many lenders flush with excess capital — fueling expectations of increased M&A in 2026.
Shares were last seen down 4.8%, with the stock up just 1.2% so far this year after gaining 62% in 2025.
NatWest shares year-to-date
“This transaction creates the UK’s leading Private Banking and Wealth Management business, delivering the scale and capabilities needed to succeed in a market with significant growth potential,” NatWest Group’s CEO Paul Thwaite said in the release.
Paul Geddes, CEO of Evelyn Partners, added that the deal marks an “exciting new chapter” for the wealth manager.
NatWest is reported to have outbid rival bank Barclays in recent days for the merger, according to Sky News.
Evelyn Partners, previously known as Tilney Smith & Williamson, offers services from financial planning, discretionary investment management, and its direct-to-consumer platform, BestInvest. It’s currently owned by private equity firms Permira and Warburg Pincus.
The deal, which is expected to close by this summer and is still subject to customary regulatory approvals, will be funded from NatWest’s existing resources, reducing its core capital by 1.3%.
NatWest is due to publish its fourth-quarter results and provide a strategic update on Friday.