NatWest Bank The company’s shares fell nearly 5% in early trading on Monday after the company announced a 2.7 billion pound ($3.7 billion) acquisition of Evelyn Partners, one of the UK’s largest wealth managers.

The deal will double NatWest’s total assets under management from 59 billion pounds to 127 billion pounds, the Bank of England said in a press release on Monday.

NatWest Bank is looking to bolster its wealth management services as the fee-based business can help cope with a drop in interest income due to lower central bank interest rates. european banking Thrive in 2025as stronger organic growth leaves many lenders with excess capital, fueling expectations for an increase in M&A in 2026.

The stock was last down 4.8% and is up just 1.2% year to date after rising 62% in 2025.

“This transaction creates the UK’s leading private banking and wealth management business, providing the scale and capabilities needed to succeed in a market with huge growth potential,” NatWest group chief executive Paul Thwaite said in a press release.

Evelyn Partners CEO Paul Geddes added that the deal marked an “exciting new chapter” for the wealth management firm.

NatWest has reportedly outbid rival Barclays in a merger in recent days. sky news.

Evelyn Partners (formerly Tilney Smith & Williamson) provides financial planning, discretionary investment management and its direct-to-consumer platform BestInvest, among other services. The company is currently owned by private equity firms Permira and Warburg Pincus.

The deal, which is expected to close this summer and is subject to customary regulatory approvals, will be funded from NatWest’s existing resources, reducing its core capitalization by 1.3%.

NatWest will release fourth-quarter results and provide a strategic update on Friday.