NatWest Awards £500m Bonuses After Exiting State Ownership
NatWest Group is set to announce nearly £500 million in bonuses for 2025 following its return to full private ownership. This milestone comes 17 years after it was saved by taxpayer money. The announcement will coincide with the bank’s annual results report this Friday.
Bonus Overview and Comparison
Sky News reports that the bonus pool for the year stands at just over £490 million. This figure represents an approximate 10% increase from the previous year’s bonuses. This growth aligns with trends seen in other major UK banks, such as Barclays and Lloyds Banking Group.
Recent Corporate Developments
- NatWest is in the process of acquiring Evelyn Partners, a wealth management firm, for £2.7 billion.
- This move marks NatWest’s largest corporate acquisition since its bailout in 2008, when it received a £45.5 billion equity infusion.
- The bank, which was once over 80% state-owned, returned to complete private ownership in May 2022.
Bonus Structure and Market Position
In recent years, the scrutiny surrounding RBS’s bonus policies has lessened as the bank shifted back to private ownership. The upcoming £500 million bonus pot reflects the improvement in NatWest’s financial performance, with updated targets having been set as recently as October.
Unlike some of its competitors, NatWest does not maintain a significant investment banking division. As a result, its annual bonuses are generally lower compared to firms like Barclays and HSBC. For reference, Lloyds handed out bonuses totaling approximately £400 million last year.
Looking Ahead
Both NatWest and Lloyds are expected to provide further details about their remuneration policies in their upcoming reports. However, all comments from NatWest and Lloyds regarding these developments have been declined at this time.
