Here’s what’s going on with NatWest right now. The bank is putting a big spotlight on wealth management and private banking. You see this across the industry — banks want steadier, less jumpy income streams, and fees from managing people’s money tend to be a lot more predictable than what they earn from lending.
NatWest’s assets under management jumped by about 20% last year — and that was before it even made its biggest move yet.
Let’s talk about that move: NatWest just struck a deal to buy Evelyn Partners for £2.7 billion. That’s their largest acquisition in nearly twenty years. It instantly gives them a much bigger presence in wealth management and brings in a lot more fee income. The main idea? Go after wealthier customers — both affluent and mass-affluent — and lock in recurring management fees, which don’t swing around as much as loan interest.
Once this deal closes, NatWest will add a big chunk of new client assets and expand what it can offer in terms of investments and wealth planning.
Financially, the strategy is already showing up in the numbers. NatWest’s latest annual results showed pre-tax profits up by about a quarter, driven in large part by gains in private banking and wealth management. The bank even bumped up its profitability targets, which is a pretty clear sign it believes in this new direction.
Looking ahead, NatWest expects its income to keep growing steadily, with wealth management leading the way when it comes to fees and commissions. They’re putting less weight on interest income, which can swing with the markets.
But it’s not just about buying other firms. NatWest is also pouring money into its own wealth services — rolling out more investment products and targeting high and ultra-high-net-worth clients. This fits with bigger trends, like huge amounts of wealth changing hands between generations. Bottom line, wealth management is a growing business and helps the bank avoid relying too much on any one source of revenue."