Barclays and Natwest Prepare for High-Stakes Bidding War Over Evelyn Partners
Two of Britain's leading financial institutions, Barclays and Natwest, are poised to enter a fierce bidding contest as they seek to significantly strengthen their wealth management divisions. According to recent reports, both banks are preparing to table offers exceeding £2 billion for London-based wealth manager Evelyn Partners, with formal bids expected to be submitted by Thursday.
Strategic Moves in the Wealth Management Landscape
The potential acquisition represents a strategic opportunity for either bank to enhance their presence in the lucrative wealth management sector. Britain's banking giants are increasingly eager to secure a larger share of this market, which offers more stable, fee-based income streams compared to traditional lending operations that are vulnerable to interest rate fluctuations.
Natwest already maintains a strong foothold in this space through its prestigious Coutts division, while Barclays has been intensifying its focus on private banking operations. Barclays' private bank division reported total income of £697 million during the first half of 2025, demonstrating the growing importance of this revenue stream.
Broader Banking Sector Shift Toward Wealth Management
This potential bidding war reflects a broader trend among UK banks that have been staging significant pivots toward wealth management services over the past year. As the Bank of England continues to reduce interest rates – which fell by one percent last year – financial institutions are seeking more reliable income sources that are less volatile and capital-light.
The wealth management division offers precisely this advantage, with its reliance on recurring fees providing insulation from the interest rate fluctuations that affect conventional lending activities. This strategic shift has become increasingly attractive as traditional banking revenue streams face pressure in the current economic climate.
Competitive Landscape and Recent Developments
A successful move by either Barclays or Natwest would follow similar strategic initiatives undertaken by their FTSE 100 counterparts. Lloyds Banking Group recently acquired the remaining 49.9 percent stake in Schroders Personal Wealth from the asset manager, giving the bank complete control over what was previously a joint venture.
However, Lloyds' wealth management push experienced temporary disruption when Jo Harris, chief executive of the bank's mass affluent division, departed shortly after the launch of its new service earlier this year.
Meanwhile, HSBC has outlined ambitious plans under Georges Elhedery's leadership to double the group's assets under management to £100 billion within five years, positioning itself to become a top-five player in the wealth management sector. The European banking giant, which recently became the City's most valuable firm, has also invested $5 billion in a new luxury wealth centre in central London, targeting the mass-affluent market segment.
Speculation also surrounds potential interest from Royal Bank of Canada, adding further complexity to the developing situation. As the Thursday deadline approaches, financial markets will be watching closely to see which institution emerges victorious in this high-stakes competition for Evelyn Partners.
