NatWest Unleashes £500m Bonus Pot After Breaking Free From State Control
NatWest is making a bold statement about its comeback, unveiling a bonus pool worth nearly half a billion pounds just months after fully returning to private ownership.
The bank is set to confirm that it handed out close to £500 million in bonuses for 2025, around 10 percent higher than the year before. And this is not just about pay packets. It marks a symbolic turning point for a lender that spent nearly two decades under the shadow of a taxpayer rescue.
To understand the weight of this moment, we have to go back to 2008. During the global financial crisis, NatWest, then known as Royal Bank of Scotland, was propped up with a massive £45.5 billion government bailout. At one stage, more than 80 percent of the bank was owned by the state. Bonus decisions became political flashpoints, debated in Parliament and closely watched by the public.
Now, that chapter has closed. The government fully exited its shareholding last year, ending 17 years of state control. And this latest bonus pool signals that NatWest believes it is firmly back on its feet.
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The increase in bonuses broadly matches what rivals like Barclays and Lloyds have awarded, suggesting the wider UK banking sector is benefiting from stronger profits and improved market conditions. NatWest’s shares are trading near levels not seen in almost two decades, reflecting renewed investor confidence.
But this move will not be without controversy. Many households are still facing cost-of-living pressures and higher mortgage rates have strained family budgets. So when a major high street bank announces a £500 million bonus pot, it inevitably raises questions about fairness and priorities.
NatWest argues that performance has improved, targets have been upgraded and the bank is operating in a more stable and competitive environment. Unlike some global rivals, it no longer runs a large investment banking arm, meaning its bonus pool is smaller than some international peers. Still, the optics matter.
There is also a strategic shift underway. The bank recently announced a £2.7 billion acquisition of wealth manager Evelyn Partners, its largest deal since the financial crisis era. That signals ambition and a desire to expand beyond traditional retail banking.
So this is more than a pay story. It is a milestone in the long recovery of a bank once rescued by taxpayers, now standing fully on its own again. The question now is whether this new chapter delivers sustainable growth and whether public trust can keep pace with rising profits.
Stay with us for continuing coverage on the banking sector and what these shifts mean for customers, investors and the wider economy.
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