NatWest Group is trying to offload Cushon, the office pensions supplier it acquired solely two years in the past, as its chief government refocuses one among Britain’s largest excessive road banks on its core strategic priorities.
Metropolis sources mentioned the financial institution was in detailed talks with numerous potential consumers of the enterprise.
Cushon gives office pension merchandise in addition to a spread 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 business and enterprise banking clients.
Cushon serves roughly 650,000 members throughout roughly 21,000 employers.
Its grasp belief providing has near £3bn of belongings underneath administration and administration, with £17.4m in income generated from this space final 12 months – 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 mentioned that Cushon had drawn curiosity from a major variety of strategic gamers within the pensions market amid a rising push for consolidation.
The federal government introduced main pensions reforms this 12 months aimed toward driving larger scale and decreasing pointless bureaucratic bills, with a view to outlined contribution schemes managing at the very least £25 billion in belongings by 2030.
A disposal of Cushon would replicate the strategic priorities of Paul Thwaite, NatWest’s chief government, which embrace a bank-wide simplification programme and extra lively stability sheet and threat administration.
Underneath 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 dedication to pay a worth that will be deemed enticing by its shareholders.
NatWest returned to full personal possession earlier this 12 months 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 mentioned: “We do not comment on speculation.
“Our focus stays on delivering for our clients.”
