NatWest Group is trying to offload Cushon, the office pensions supplier it acquired solely two years in the past, as its chief government refocuses considered one of Britain’s largest excessive road banks on its core strategic priorities.
Sky Information has learnt that NatWest is working with advisers on a sale of Cushon, for which it paid £144m in trade for a controlling stake.
Metropolis sources stated the financial institution was in detailed talks with quite a lot of potential consumers of the enterprise.
Cushon affords office pension merchandise in addition to a variety of office ISAs, together with Junior ISAs, Lifetime ISAs and Common Funding Accounts.
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NatWest’s acquisition of the enterprise was aimed toward diversifying its non-interest earnings by providing Cushon’s merchandise to the financial institution’s industrial and enterprise banking prospects.
Cushon serves roughly 650,000 members throughout roughly 21,000 employers.
Its grasp belief providing has near £3bn of belongings beneath administration and administration, with £17.4m in income generated from this space final yr – 97% of Cushon’s whole revenues.
NatWest owns an 85% stake in Cushon, with the rest held by the subsidiary’s administration.
A market supply stated that Cushon had drawn curiosity from a big variety of strategic gamers within the pensions market amid a rising push for consolidation.
The federal government introduced main pensions reforms this yr aimed toward driving higher scale and decreasing pointless bureaucratic bills, with a view to outlined contribution schemes managing at the least £25 billion in belongings by 2030.
A disposal of Cushon would mirror the strategic priorities of Paul Thwaite, NatWest’s chief government, which embody a bank-wide simplification programme and extra energetic steadiness sheet and danger administration.
Below Mr Thwaite, NatWest has thought of a small variety of larger-scale acquisitions, together with that of Santander UK.
That deal didn’t progress due to NatWest’s willpower to pay a value that might be deemed engaging by its shareholders.
NatWest returned to full personal possession earlier this yr when the federal government offered the final of the shares it acquired as a part of the £45.5bn rescue in 2008 of what was then Royal Financial institution of Scotland.
A NatWest Group spokesperson stated: “We don’t touch upon hypothesis.
“Our focus stays on delivering for our prospects.”
