NatWest boss will get a bumper bonus after a surge in income ends ‘disaster period’

NatWest will hand its boss a bumper pay-out after reporting a surge in profits last year, when the government sold its remaining stake in the bank.

The lender reported pre-tax profits rose 25 per cent to £7.7billion last year, up from £6.2billion a year ago, driven by its private banking and wealth division.

It said it had grown assets under management and administration by 20 per cent to £58.5billion.

It comes just days after Natwest signed a £2.7billion deal to buy wealth manager Evelyn Partners, in its first major deal since its return to full private ownership last May.

It is the latest bank to focus on managing customers’ investments as income from lending has fallen in line with rate cuts.

End of an era: Natwest returned to full private ownership last May 

Natwest will hand shareholders a 32.5p dividend, a 51.2 per cent increase from the 21.5p payout in 2024.

Natwest now expects to make a return on tangible equity of greater than 18 per cent in 2028, up from previous guidance of greater than 15 per cent in 2027.

Chief executive Paul Thwaite said: ‘We are raising our ambition and sharpening our staretgic focus, with stretching new targets in place.’

Total income rose to £1.47billion driven by currencies and capital markets, while net interest income – the difference between the interest it earns and pays out – rose from £432million to £488million.

Thwaite saw his pay rise from £4.9million to £6.6million, following the ‘delivery of strong results and share price growth’.

Natwest’s annual report showed the chief had landed a £1.5million annual bonus, paid in early 2026, and £2.5million in long-term share awards. It brings his total bonus to £4million, up from £2.6million a year ago.

Shares in Natwest have jumped around 85 per cent since he took the helm in July 2023.

Thwaite and chief financial officer Katie Murray will also see their salaries rise by 3.25 per cent from 1 April.

The report also showed it would increase its staff bonus pool by 11 per cent to £495million.

‘The uplift in the bonus pool for 2025 reflects the increase in profit since 2024 and the strong performance across the scorecard,’ it said.

Chris Beuachamp, chief market analyst at IG said: ‘NatWest’s full-year numbers draw a firm line under the crisis era.

‘The real question for investors is whether these returns can hold as Bank of England rate cuts loom, though income guidance of £17.2–17.6 billion for 2026 and a loan impairment rate below 25 basis points suggest management is quietly confident.

‘With a 50 per cent payout ratio and scope for buybacks, NatWest is making a strong case that this level of profitability is structural rather than simply a gift from higher rates.’