NatWest Group has announced a substantial surge in its annual profits, alongside significant increases in executive compensation and staff bonus pools, driven by strategic acquisitions and robust customer growth.
Record-Breaking Financial Performance
The banking conglomerate, which includes Royal Bank of Scotland, Ulster Bank, and Coutts, reported an operating pre-tax profit of £7.7 billion for the fiscal year 2025. This figure represents a notable 24.4% increase compared to the previous year and exceeded analyst expectations, which had projected around £7.5 billion.
Revenue Growth and Customer Expansion
Income from NatWest's retail banking division experienced a 15% year-on-year rise, fueled by growing customer deposits across savings and current accounts. A key contributor to this expansion was the acquisition of Sainsbury's Bank, which transferred approximately one million customers to NatWest's portfolio. This move, initially announced in 2024, bolstered the bank's balance sheet with new deposits and accounts.
Additionally, mortgage balances saw a significant uptick, partly due to the acquisition of a £2.3 billion mortgage portfolio from Metro Bank. These strategic purchases have strengthened NatWest's market position and diversified its revenue streams.
Executive and Staff Compensation Increases
Chief Executive Paul Thwaite's total remuneration package soared by over a third in 2025, reaching £6.6 million, up from £4.9 million the previous year. His compensation included a £1.5 million annual bonus, scheduled for payment in early 2026, and £2.5 million in long-term share awards, reflecting the bank's strong performance.
Furthermore, NatWest increased its staff bonus pool by 11% to £495 million for the year. The bank attributed this uplift to the profit growth since 2024 and exceptional performance across financial and customer metrics, as well as changes in the eligible employee population.
Strategic Moves and Future Ambitions
In a bid to further penetrate the affluent market, NatWest recently struck a deal to acquire wealth management firm Evelyn Partners for £2.7 billion. This acquisition aligns with the bank's strategy to expand its services and capture higher-value clients.
Reflecting on the year, Mr. Thwaite described 2025 as "another strong year" for the group, highlighting broad-based growth across its customer segments. He emphasized NatWest's role in facilitating home ownership, encouraging savings and investments, and supporting business expansion. The CEO also outlined plans to raise the bank's ambitions with new, challenging targets, signaling a continued focus on strategic growth and market leadership.
