NatWest chief calls for stability amid Starmer leadership crisis
Bank says it’s seeking ‘certainty and growth from Labour’ amid Government resignations
Louis Goss Business reporter. Michael Bow Chief City Correspondent
09 February 2026 8:56am GMT
Natwest’s chief executive has called for stability from the Government as Sir Keir Starmer’s premiership is left hanging in the balance.
On Monday, Paul Thwaite said the bank was seeking “certainty and growth” from Labour as the Prime Minister fights for his political survival. The resignation of Morgan McSweeney, a key ally of the PM, has raised fears about a leadership challenge.
UK borrowing costs rose and the pound fell on Monday amid the turmoil.
Mr. McSweeney resigned on Sunday after taking “full responsibility” for urging Sir Keir to appoint Lord Mandelson as US ambassador despite fears over the peer’s links to Jeffrey Epstein.
Asked about the turmoil gripping the Government, Mr Thwaite said British business wanted to see a period of stability from Westminster.
“What all businesses need is stability, certainty and growth,” he said. “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.”
NatWest swoops for City firm
The comments came after NatWest sealed its largest acquisition in nearly 20 years, buying leading British wealth manager Evelyn Partners in a major bet on the UK economy.
Mr Thwaite said the takeover still “made sense” irrespective of the political or economic environment.
“My perspective is this is a long-term strategic move and what I want, irrespective of government, is stability, certainty and growth,” he said.
The bank, which was owned by taxpayers until last year, acquired Evelyn as it seeks to boost money management services for its 20 million customers.
The FTSE 100 lender will pay £2.7bn for Evelyn, making it the largest deal since before the height of the financial crisis in 2008.
Paul Thwaite, the bank’s chief executive, said: “Bringing together these two leading businesses creates a unique opportunity to provide financial planning, savings and investment services to more families and people across the UK.
“At a time when the benefits of saving and investing are increasingly part of the national conversation, 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.”
The takeover is the largest since NatWest, then known as Royal Bank of Scotland (RBS), paid €27bn (£23.5bn) to acquire Dutch lender ABN Amro at the height of the financial crisis.
Banks have increasingly sought to move into the financial planning industry, hoping to tap the large amount of savings from customers to earn more from fees.
Evelyn was created in 2020 from a merger of Tilney and Smith and Williamson, which dated back to the 19th century, by owners Permira and Warburg Pincus. It has £69bn of assets under management and nearly 156,000 customers.
Competing with Lloyds
Analysts from Citi said the deal would help NatWest compete more aggressively with Lloyds.
“When comparing NatWest to Lloyds, one of the criticisms we receive of NatWest is that it lacks a non-net interest income growth story and this acquisition would go some way to resolving this,” they said.
NatWest already has a significant presence in wealth management through its ownership of upmarket private bank Coutts.
The takeover is expected to boost NatWest’s fee income by around 20pc.
The acquisition will also more than double the value of NatWest’s £59bn in assets under management and administration, lifting the total to £127bn.
NatWest said it expected the deal will lead to £100m worth of cost savings in the immediate term and said it aimed to achieve £150m of cost savings in the future.
NatWest was taken under state control in the wake of the 2008 financial crash but was finally returned to private ownership when the Government sold its last shares in May last year.
The bank’s share price has risen sharply over the past two years as it has profited from higher interest rates.
NatWest is one of Britain’s “big four” banks alongside HSBC, Lloyds and Barclays. It traces its origins back to 1658 with the founding of Smith’s Bank in Nottingham. The bank also announced a £750m share buyback in addition to the takeover.
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