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NatWest Group has reported a significant surge in its annual profits, climbing by almost a quarter last year, while its chief executive’s remuneration saw a substantial one-third increase.
The banking giant, which encompasses Royal Bank of Scotland, Ulster Bank, and Coutts, announced an operating pre-tax profit of £7.7 billion for 2025. This figure represents a 24.4% rise compared to the previous year, surpassing analysts’ forecasts of £7.5 billion.
The robust performance was attributed to an influx of new customers, partly driven by strategic acquisitions. Income from its retail banking division alone jumped by 15% year-on-year, bolstered by an increase in customer deposits across savings and current accounts, alongside the integration of new balances following the acquisition of Sainsbury’s Bank.
NatWest said about one million Sainsbury’s Bank customers were switched over after the acquisition, which was first announced in 2024.
Mortgage balances also increased, while the bank gained a £2.3 billion mortgage portfolio from Metro Bank.
The full-year results announcement comes days after the bank said it had struck a deal to buy wealth management business Evelyn Partners for £2.7 billion, in a bid to tap further into the affluent market.
Meanwhile, chief executive Paul Thwaite saw his pay package soar by a third last year as he picked up more than £4 million in bonus and share awards.
The group’s annual report showed Mr Thwaite’s total pay jumped to £6.6 million in 2025, up from £4.9 million the previous year.
He landed a £1.5 million annual bonus, which will be paid in early 2026, and £2.5 million in long-term share awards.
The report also said that the bank hiked its bonus pool by 11% to £495 million for last year, which was distributed among eligible staff.
It said: “The uplift in the bonus pool for 2025 reflects the increase in profit since 2024 and the strong performance across the scorecard, particularly in relation to financial and customer targets, as well as changes in the underlying eligible population.”
Mr Thwaite said 2025 was “another strong year” for the banking group.
“We delivered broad-based growth across our three customer businesses, and our positive impact is clear to see; whether making home ownership a reality for more people, helping more customers to save and invest or supporting more businesses to scale and grow,” he said.
“We are raising our ambition and sharpening our strategic focus, with stretching new targets in place.”
