RBS owner NatWest’s ‘sparkling’ annual profits point to a bank in rude health: full reaction

The group, which also comprises Ulster Bank and Coutts, reported an operating pre-tax profit of £7.7 billion for 2025 - up 24.4 per cent on the year before, and higher than the £7.5bn that some analysts had been expecting.

Income from its retail bank jumped by 15 per cent year on year, with customer deposits growing as savings and current accounts increased, and it acquired a new set of balances after buying Edinburgh-based Sainsbury’s Bank. NatWest noted that some one million Sainsbury’s Bank customers were switched over after the acquisition, which was unveiled in 2024.

Meanwhile, chief executive Paul Thwaite saw his pay package soar by a third last year as he picked up more than £4 million in bonus and share awards. The group’s annual report also noted that the bank hiked its bonus pool by 11 per cent to £495m for last year, which was distributed among eligible staff.

NatWest, which rebranded from RBS Group, returned fully to private ownership less than a year ago. The UK government sold its remaining shares in the banking group in May and confirmed a £10.5bn loss since it was rescued by UK taxpayers during the 2008 financial crisis.

Richard Hunter, head of markets at Interactive Investor, which is owned by Aberdeen Group, said: “This is a sparkling set of numbers by any standards. As far as investors are concerned, NatWest is in a sweet spot. The government shackles have gone, the group has prodigious amounts of cash and acquisitions to boost growth further are playing out.”

The full-year results announcement comes just days after the bank said it had struck a deal to buy wealth management business Evelyn Partners for £2.7bn, in a bid to tap further into the affluent market.

Thwaite said 2025 had been “another strong year” for the banking group.

“We delivered broad-based growth across our three customer businesses, and our positive impact is clear to see; whether making home ownership a reality for more people, helping more customers to save and invest or supporting more businesses to scale and grow,” he told investors.

“We are raising our ambition and sharpening our strategic focus, with stretching new targets in place.”

Nick Sherrard, managing director of Edinburgh-based consultancy Label Sessions, said: “NatWest’s results land at a pivotal point in its strategic reset and recent headlines have also raised the stakes. They paint a picture of a bank in a strong position, backed by a clear strategy and much simpler than it was only a few years ago, with profits surging and guidance lifted.

“The £2.7bn acquisition of Evelyn Partners is a bold statement that NatWest wants to scale wealth and financial planning, not just defend retail and commercial banking. It’s also a deal that means ‘execution’ is the key word for 2026.

“On innovation, its focus on fintech and AI-led customer experience signals an intent to get big new propositions and digital journeys into the market.”

Royal Bank of Scotland makes fresh £10 billion social housing pledge