NatWest Group has unveiled a remarkable surge in its annual financial performance, with pre-tax profits climbing by almost a quarter in 2025. The banking conglomerate, which includes Royal Bank of Scotland, Ulster Bank, and Coutts, announced an operating pre-tax profit of £7.7 billion for the year. This represents a substantial 24.4% increase compared to the previous year, comfortably exceeding analysts' expectations of £7.5 billion.
Drivers of Growth and Strategic Moves
The robust profit growth was fuelled by a significant influx of new customers, partly driven by strategic acquisitions. Income from NatWest's retail banking division alone experienced a notable 15% year-on-year jump. This boost was supported by an increase in customer deposits across both savings and current accounts, alongside the integration of new balances following the acquisition of Sainsbury’s Bank. Approximately one million Sainsbury’s Bank customers were transitioned over after the deal, which was first announced in 2024.
Furthermore, mortgage balances saw an increase, with the bank gaining a £2.3 billion mortgage portfolio from Metro Bank. In a move to expand its reach into the affluent market, NatWest recently struck a deal to acquire wealth management business Evelyn Partners for £2.7 billion, announced just days before the full-year results.
Executive Compensation and Staff Bonuses
Alongside the profit surge, chief executive Paul Thwaite witnessed his remuneration package soar by a third last year. The group’s annual report revealed that Mr Thwaite’s total pay jumped to £6.6 million in 2025, up from £4.9 million the previous year. This included a £1.5 million annual bonus, scheduled for payment in early 2026, and £2.5 million in long-term share awards.
Simultaneously, the bank increased its bonus pool by 11% to £495 million for 2025, which was distributed among eligible staff. The bank stated that the uplift in the bonus pool reflects the increase in profit since 2024 and strong performance across various metrics, particularly in relation to financial and customer targets, as well as changes in the underlying eligible population.
Leadership Perspective and Future Ambitions
Chief executive Paul Thwaite described 2025 as "another strong year" for the banking group. He highlighted the delivery of broad-based growth across its three customer businesses and the positive impact on customers, whether in making home ownership a reality for more people, helping more customers to save and invest, or supporting more businesses to scale and grow.
Mr Thwaite added, "We are raising our ambition and sharpening our strategic focus, with stretching new targets in place." This statement underscores the bank's confidence in its trajectory and its commitment to continued expansion and customer service enhancement in the competitive financial landscape.
