NatWest Group is preparing to announce significant bonuses of nearly £500 million, marking a pivotal moment in its return to full private ownership after 17 years. This announcement will coincide with the release of the bank’s annual results and highlights a positive shift in its financial trajectory.
Bonus Pool Details
The bonus pool for the year 2025 is set at just over £490 million, an increase of approximately 10% compared to the previous year. This growth aligns with similar increases seen in other major UK banks, including Barclays and Lloyds Banking Group.
Market Performance and Corporate Acquisition
NatWest’s shares are currently trading at levels not seen in nearly two decades. In a significant move earlier in the week, the bank confirmed its acquisition of Evelyn Partners, a wealth management firm, for £2.7 billion. This transaction represents NatWest’s largest acquisition since its bailout in 2008, when it received a £45.5 billion equity injection.
Return to Private Ownership
After enduring a tumultuous period post-bailout, when it was over 80% state-owned, NatWest returned to full private sector ownership in May of last year. This transition has eased previous tensions about bonus decisions, which drew scrutiny and intense discussions in Westminster in the years following the financial crisis.
Bonus Comparison with Rivals
The upcoming £500 million bonus allocation will reflect NatWest’s enhanced financial performance, having recently upgraded its performance targets. Unlike some of its competitors, such as Barclays and HSBC, NatWest no longer operates a large investment bank, resulting in significantly smaller annual bonus pools.
Looking Ahead
- NatWest’s bonus pool for 2025: £490 million
- Increase from the previous year: 10%
- Acquisition of Evelyn Partners: £2.7 billion
- Previous bailout support: £45.5 billion
- Return to private ownership: May 2022
As both NatWest and Lloyds prepare to release their annual reports, attention will focus on their revised remuneration policies and how they plan to navigate the evolving banking landscape.
