NatWest has reported a 24% surge in annual profit, posting £7.7 billion in pretax operating income for 2025, beating analyst expectations of £7.5 billion. The UK lender's strong performance comes alongside a major £2.7 billion acquisition of Evelyn Partners, its largest transaction since the 2008 government bailout.

CEO Paul Thwaite announced aggressive new targets, including a return on tangible equity (RoTE) exceeding 18% by 2028, up from previous guidance of over 15% in 2027. The bank also aims for customer assets and liabilities to grow more than 4% annually, a cost-to-income ratio below 45%, and capital generation above 200 basis points.

Bank of America analysts responded positively to the results, upgrading their target price to 770p from 735p, citing the combination of growth commitment and cost discipline. The acquisition of Evelyn Partners is projected to generate pretax operating profit exceeding £300 million by year three, with a total return on invested capital above 11%. NatWest also announced a £750 million share buyback program for the first half of 2026.