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Drivers of value creation – Private Banking

Claire Kane, NatWest Group’s Director of Investor Relations, looks at the current structural opportunities within the UK wealth market and examines how NatWest Group’s Private Banking and Wealth Management growth strategy will unlock these.   

A structural growth opportunity

The UK wealth market presents a significant structural growth opportunity for NatWest Group’s Private Banking and Wealth Management business.

The next decade will witness one of the largest intergenerational wealth transfers in history, with UK baby boomers expected to pass down approximately £1.2 trillion to younger generations. This will nearly double the wealth of Generation X and Millennials, thereby increasing their demand for tailored financial support and advice.

In addition, with the growth in the High-Net-Worth segment, which is outpacing other demographics, the UK Wealth Market is projected to reach an addressable market value of £8.4 trillion by 2030.

Against this backdrop, industry trends also indicate a burgeoning need for wealth management services. With less than 10% of UK adults currently seeking financial advice, we see huge potential to support millions of customers who currently receive no guidance on their savings, investments and pensions.

And when the UK Government’s Advice Guidance Boundary Review reports on its findings, it is likely to become easier for more consumers to get the financial help they want, at prices they can afford.

Building from a strong proposition

NatWest Group’s Private Banking and Wealth Management business already offers an attractive proposition to clients. Through its award-winning brand, Coutts, it provides a comprehensive range of services tailored for High-Net-Worth Individuals (HNWIs), backed by a strong brand heritage and a team of highly-experienced private bankers and specialist advisers.

Through these, Coutts is equipped to provide bespoke financial planning and strategic advice for various client segments, including entrepreneurs and international investors.

This has meant that since 2021, Coutts has grown client assets and liabilities by 16% to £107 billion in Q1 2025. Included in this growth is a 36% increase in assets under management and administration (AUM) to £49 billion as at Q1 2025, driven by strong net new inflows and market movements. 

This has contributed to higher non-interest income which was around a third of Private Banking’s total income last year. The AUM figure includes deposits of £41.2 billion, which have provided liquidity and cost-effective funding to NatWest Group.   

This underpins our commitment to delivering strong returns based on a high-quality client experience and is a key driver of long-term value creation for NatWest Group.

The Private Banking and Wealth Management growth strategy

From these key strengths and foundations, we see significant headroom for growth, both in terms of expanding our Private Banking client base and our assets under management and administration.   

The priorities for achieving this growth are focused in three areas.

  1. Firstly, we are intensifying our focus on high- and ultra-high-net worth clients in the UK.
  2. Secondly, we aim to treble customer referrals from our colleagues in the Commercial & Institutional Business, including many entrepreneurs, while corporate and institutional banking serves thousands of senior executives. 
  3. Finally, we are enhancing our investment proposition and developing plans to extend it to more customers in our Retail Banking business. This enhancement is focused on centralising investment expertise under a single Chief Investment Officer, enabling us to scale our offerings and provide consistent outcomes for clients across NatWest Group. 

A model for future growth

In summary, NatWest Group is at a pivotal moment in its Private Banking and Wealth Management journey. With a focused strategy on high- and ultra-high-net-worth clients; capitalising on the referral opportunities we have from our Commercial & Institutional franchise; and building out our investment capabilities and extending our investment offering to more customers in our Retail Bank -  we are well-equipped to harness the significant growth opportunities within the UK wealth market. This underpins our commitment to delivering strong returns based on a high-quality client experience and is a key driver long-term value creation for NatWest Group.

Our next spotlight session is on our Retail Banking business, taking place in November 2025. You can sign up here closer to the time: https://investors.natwestgroup.com/events-calendar.aspx

 

The material published on this page is for information purposes only and should not be regarded as providing any specific advice, or used by consumers to make financial decision. Terms and conditions apply to any products or services mentioned.

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