Origins and early growth branch in
Anglesey , branch building designed by the in-house architect F. C. R. Palmer branch designed by Palmer in 1929 Prior to the
Country Bankers Act 1826 (
7 Geo. 4. c. 46), English banks were permitted to have no more than six partners – hence the expression "private banks". The only banks allowed to be
joint stock were the
Bank of England and the Scottish banks, which operated under a different legal system. The leading campaigner for change was
Thomas Joplin, a Newcastle timber merchant "with local experience of banking disasters" and an observer of the greater stability of the nearby Scottish banks. The Country Bankers Act 1826 permitted the establishment of joint stock banks but note issue was only allowed outside a radius of 65 miles of London. The 1826 act was followed by the creation of new provincial joint stock banks and conversions from existing private banks. Because of the prohibition on note issue in the London area, it was incorrectly assumed that the act also prohibited joint stock banks themselves, an ambiguity that was removed by the
Bank Charter Act 1833. When Thomas Joplin discovered that the laws preventing the establishment of joint stock banks in Ireland had been repealed in 1824, he promoted the Irish Provincial Banking Company, to be based in London but with branches in all the principal towns in Ireland outside Dublin; this was to be a forerunner of Joplin’s English version. Joplin left the management of the Irish Bank in 1828. Financial support from his cousin
George Angas was promised in 1829 and a company was formed in 1830. The first meeting resolved to establish a "system of banking …under the review of a central board in London [and] applied to the direction of country banking". There were numerous delays but the National Provincial Bank of England was eventually launched in 1833. The National Provincial Bank thus was established as a provincial bank but with a
London head office. Moreover, it was specifically structured to be a branch banking enterprise prepared to concentrate on a large number of smaller accounts rather than a small number of large accounts. For more than thirty years the bank operated as a country bank, with its headquarters in London, but not transacting banking business in the capital. The first branch to be opened, at the beginning of 1834, was in
Gloucester followed by
Brecon,
Walsall,
Birmingham,
Wotton-under-Edge, Boston and
Wisbech. By 1836 there were 32 branches. Considerable dissension soon arose relating to the structure of the branch system and Joplin, who favoured a network of local semi-autonomous banks, left. The model for the branch system had been the Scottish one, and the bank reinforced this by recruiting Daniel Robertson from the Union Bank of Scotland; he served as general manager for thirty years. There was now little in the way of acquisition but the branch network continued to increase – according to the NatWest Heritage Hub, there were 200 branches by 1900 and over 450 by the time of the 1918 merger (however, the scale of the post-1900 increase is surprisingly large and the latter figure may include sub-branches).
Union Bank of London The Union Bank of London was formed in 1839 and it remained a purely metropolitan bank for the rest of the century; it was of no great size during that period, opening around a dozen branches in central London and acquiring the occasional small local bank. Although it refused to open branches in the provinces, it did develop an extensive overseas business. Policy changed at the turn of the century and the Union embarked on a major expansion acquiring in particular the private
Cripplegate Bank in 1900,
Smith's Bank in 1902, and
Prescott's Bank in 1903, thereby forming the Union of London and Smith’s Bank. However, in 1891 a multiple merger radically changed the scope of the Bank. Prescott’s acquired Dimsdale, another long-established London private bank;
Miles, Cave, Baillie of
Bristol (established 1750); and Tugwell Brymer of
Bath; the enlarged firm was called Prescott, Dimsdale, Cave, Tugwell & Co. Several more small country banks were later acquired and the Bank’s name was shortened to Prescott & Co. in 1903, shortly before its acquisition by the Union Bank. The National Provincial Bank eventually acquired the Union of London and Smith’s Bank in 1918. The enlarged bank was renamed the National Provincial and Union Bank of England. From 1844 on, the Union Bank was located at Princes Street on
Bank Junction, across from the
Bank of England. On that site the bank erected a prominent new head office building, designed by
Philip Charles Hardwick and completed in 1865, remodeled in 1887. That building was in turn replaced by the branch building of National Provincial Bank on the same location, designed by
Edwin Cooper and completed in 1932.
Interwar period and later developments Further acquisitions followed the 1918 merger, in particular the prestigious London-based
Coutts Bank in 1920. Significant regional banks included Bradford District Bank (1919), Sheffield Banking Company (1919) and Northamptonshire Union Bank (1920). In 1924 the small Guernsey Banking Co. was to be the Bank's last domestic acquisition until 1961 and National Provincial’s progress came from continued branch opening, particularly around the London area. National Provincial did have a small overseas operation in the form of a 50 per cent share of
Lloyds and National Provincial Foreign Bank in
Paris, which it had acquired in 1917 and part-sold to
Lloyds Bank in 1955. However, its more substantive overseas move came in 1924 with the acquisition of
Grindlays Bank, a London-based institution with offices in
India and specialising in serving the Indian army. Grindlays had been affected by the failure of competing banks and sought a larger partner. Grindlays was allowed to operate independently and was sold to the London-based National Bank of India in 1948. In 1961 National Provincial acquired the
Isle of Man Bank but the major acquisition came in 1962 when the
District Bank was bought, creating a company with over £1.4 billion in assets and 2,100 branches. The District, being the one-time Manchester and Liverpool District Banking Company, gave the National Provincial valuable exposure to the north west. It maintained a separate board in Manchester until the merger with Westminster Bank. The enlarged entity now had a network of 3,600 branches.
Table of acquisitions ==Branding==