NatWest Group to Acquire Evelyn Partners in £2.7bn Deal and Launch £750m Share Buyback

Deal economics and valuation: 9.7x EV/EBITDA and £100 million cost synergies

NatWest is paying an enterprise value of £2.7 billion. Using Evelyn’s 2025 EBITDA of £179 million, the RNS cites a 9.7x EV/EBITDA multiple including target run-rate cost synergies. Translation: the headline multiple assumes some of the planned cost savings are delivered. The bank is targeting around £100 million of annual run-rate cost synergies (about 10% of the combined PBWM cost base), with approximately £150 million of costs to achieve.

Management expects the deal to be accretive to growth and Return on Tangible Equity (RoTE) in the first year of ownership and to deliver returns greater than a share buyback. Revenue synergies – mainly cross-selling planning and investment to more customers – are described as “significant” but not quantified.

Capital impact and shareholder returns: CET1, buybacks, and dividends

The transaction will be funded from existing resources and is expected to reduce NatWest’s CET1 ratio by around 130 basis points. Even so, the group says it will remain well-capitalised and that the transaction will strengthen capital generation over time.

On capital returns, there’s a new £750 million share buyback announced today. After that, the next buyback announcement is expected at the H1 2027 results. The ordinary dividend payout ratio of around 50% of attributable profits remains unchanged.

Key numbers at a glance

Enterprise value (EV)	£2.7 billion
Evelyn Partners 2025 Operating Income	£509 million
Evelyn Partners 2025 Costs	£330 million
Evelyn Partners 2025 EBITDA	£179 million
Evelyn AUMA	£69 billion (additional detail: £68.6 billion at FY 2025)
Evelyn 2025 Net New Money	£1.6 billion
Combined AUMA	£127 billion
Total Customer Assets & Liabilities (combined)	£188 billion
Fee income uplift (pre-revenue synergies)	c.20%
Annual run-rate cost synergies	c.£100 million
Costs to achieve synergies	c.£150 million
EV/EBITDA multiple	9.7x (including target run-rate cost synergies)
CET1 ratio impact	c.-130 basis points
Share buyback	£750 million
Dividend payout ratio	c.50% of attributable profits
Expected completion	Summer 2026 (subject to approvals)

What’s positive for shareholders

• Scale and leadership: £127 billion AUMA and a unified PBWM platform should support better operating leverage and brand reach.
• More fee income, less cyclicality: c.20% uplift in fee income pre-revenue synergies pushes the mix towards capital-light earnings.
• Cost take-out is tangible: c.£100 million annual run-rate synergies, with a clear cost-to-achieve figure.
• Accretive from year one: management expects RoTE accretion and returns better than a buyback.
• Capital returns continue: £750 million buyback now and dividend policy unchanged at around 50% payout.

Key risks and what to watch

• Regulatory approvals and timing: completion is targeted for summer 2026, but approvals can shift timelines.
• Integration execution: combining platforms, teams, and processes is where deals succeed or stumble. The £150 million cost-to-achieve needs tight control.
• Capital drag near term: CET1 down c.130 bps is manageable but not immaterial. The payoff depends on synergy delivery and revenue growth.
• Valuation sensitivity: the quoted 9.7x EV/EBITDA includes target run-rate cost synergies; the implied pre-synergy multiple is not disclosed.
• Buyback cadence: after this £750 million, the next buyback announcement is expected at H1 2027, which may feel like a pause for those focused on near-term capital returns.

Timeline and next steps

Completion is subject to customary regulatory approvals and is expected in summer 2026. NatWest’s CEO and CFO are hosting an investor call at 8am (GMT) on Monday 9 February via Zoom (Meeting ID: 980 9474 7189). The announcement was flagged as containing inside information, which is now public via the RNS.

Josh’s take: strategically smart, priced for delivery

This is a credible swing at leadership in UK wealth. The industrial logic stacks up: more fee income, capital-light growth, and real synergies in a business where scale matters. The cross-sell runway into NatWest’s 20 million customers is the blue-sky upside.

The flip side is familiar: integration execution, cultural fit, and the fact the headline multiple leans on delivery of synergies. With CET1 down c.130 bps and a slower buyback cadence after today’s £750 million, investors will want quick proof of progress.

Net-net, it looks strategically and financially compelling if NatWest hits the £100 million cost synergy target and unlocks even a portion of the revenue opportunity. Early milestones to watch: retention of Evelyn’s planners and investment managers, client net new money trends, and clear integration timelines under PBWM chief Emma Crystal.