NatWest boss calls for 'stability' as Starmer clings on: Thwaite speaks out as he snaps up Evelyn Partners for £2.7bn
The boss of Natwest has called for ‘stability’ as Labour’s meltdown over Lord Mandelson leaves the Prime Minister on the brink.With doubts over Sir Keir Starmer’s future in No 10 pushing gilt yields higher and the pound lower, Paul Thwaite said businesses and households need ‘stability, certainty and growth’.The comments came as he completed NatWest’s biggest deal since its state bailout during the financial crisis in 2008 by snapping up wealth manager Evelyn Partners for £2.7billion.Shares in the lender fell 6 per cent, or 39.4p, to 620p as markets reacted cautiously – though the bank insisted it had not overpaid.The deal – its biggest since a tie-up with ABN Amro in 2008 – creates Britain’s largest private banking and wealth management, and NatWest said it would transform savings and investments for its 20m customers.Evelyn, which owns the Bestinvest online platform, is being sold by its private equity owners Permira and Warburg Pincus. Plea: Natwest boss Paul Thwaite (pictured) said businesses and households need ‘stability, certainty and growth’It was previously known as Tilney, Smith and Williamson, and has £69billion in assets under management which, when combined with NatWest’s Coutts brand, will add up to £127billion.Thwaite said: ‘We can help customers to make more of their money through a broader range of services, as well as helping to drive growth and investment across the economy.‘With the wealth held by younger generations predicted to almost double by 2030, there will be an increasing requirement for financial planning.’The deal is set to bring £100million of annual savings and Thwaite said ‘there will be areas of duplication’ – a hint that job cuts will be on the way.It comes after NatWest returned to full private ownership last May, 17 years after the £45billion bailout in 2008.That has helped Thwaite step up deal-making, having snapped up a million Sainsbury’s savings, credit card and loan customers and a £2.5billion mortgage portfolio from Metro Bank in 2024.NatWest is reported to have seen off interest in Evelyn from rival Barclays, as banks eye wealth managers because their fees offset an expected decline in net interest income. The sector’s attraction has also been boosted by rules allowing savings platforms to offer ‘targeted support’ to customers on how to invest money without having to navigate the restrictions involved in financial advice.NatWest finance director Katie Murray said: ‘We’re very comfortable that this is not a situation where we’ve overpaid.’But Gary Greenwood, banking analyst at Shore Capital, said: ‘We remain cautious on the deal economics, which rely heavily on synergy delivery.’Asked about political turmoil in Westminster, Thwaite said: ‘What all businesses need, what consumers need, is stability, certainty and growth.‘They’re the conditions that create the right environment so that’s what I would be looking for. That’s what any business leader would be looking for.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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NatWest boss calls for 'stability' as Starmer clings on: Thwaite speaks out as he snaps up Evelyn Partners for £2.7bn
