NatWest CEO Paul Thwaite highlighted on Tuesday that challenging valuations have made it more difficult for the bank to pursue growth in its wealth management business through acquisitions. Although rumors suggest potential expansion deals, Thwaite emphasized that any new acquisitions must meet stringent financial, strategic, and operational criteria.
Acknowledging the allure of a larger wealth business due to its demographic and income advantages, Thwaite underscored the need for sound economics, stating that the bank must resist being swayed solely by the sector's potential benefits.
NatWest, known for its recent growth and successful restructuring, has seen its shares increase significantly over the past year. Reports from the Financial Times revealed preliminary talks with Spain's Banco Santander regarding a UK retail business takeover, yet both parties remain tight-lipped on the matter.
Thwaite expressed a strong ambition for NatWest's private bank Coutts, emphasizing the necessity of expanding its product range to attract a wider customer base, including its traditional clients and mass affluent individuals.
Moreover, NatWest's recent acquisition of prime residential mortgages from Metro signifies its continued activity in a competitive market, with Thwaite citing positive mortgage lending volumes for 2025 while maintaining a disciplined approach toward achieving attractive returns.