NatWest Group has reported a significant 24% increase in its 2025 pretax operating profit, reaching £7.7 billion. The British banking institution also elevated its strategic return on tangible equity target for 2028, signaling confidence in its future performance.
Capital Returns and Strategic Moves
The bank's board proposed a final dividend of 23.0 pence per share, bringing the total annual payout to 32.5 pence—a 51% increase from the prior year. Alongside this, a £750 million share buyback is scheduled for the first half of 2026. These moves are part of NatWest's enhanced capital return framework, even as it continues to invest in technology and diversify revenue streams beyond traditional lending.
Assets under management and administration grew by 20% to £58.5 billion, excluding the pending acquisition of wealth manager Evelyn Partners for £2.7 billion. That deal, expected to close by summer 2026 subject to regulatory approval, has introduced recent volatility to the stock. CEO Paul Thwaite stated the group is "raising our ambition and sharpening our strategic focus" with new, stretching targets.
Market Reaction and Financial Metrics
NatWest shares experienced a turbulent week, closing at 595p on Thursday, down 2.55% for the session. The stock has traded around the 600p level, with some analysts identifying 598p as a near-term technical support. For the full year, return on tangible equity stood at 19.2%, while earnings per share jumped 27% to 68.0p.
Analysts have offered mixed views on the Evelyn Partners acquisition, with some praising the strategic fit for NatWest's wealth management ambitions but noting the transaction's premium price. The broader UK banking sector has faced pressure from political uncertainty and expectations of further interest rate cuts by the Bank of England.
