- The government’s stake in the banking giant dropped by 1% to 26.95%
NatWest has taken another step towards full-private ownership after the Government sold another chunk of shares in the lender.
The Government’s stake in the bank has now dropped by one percentage point to 26.95 per cent, as it continues with its plans to sell all of its shares by 2026.
NatWest was taken into public control in 2008 when the Government was forced to injected a total of £45.5billion – about £5 a share – into the stricken lender, then Royal Bank of Scotland, during the height of the financial crisis.
On Monday, it was revealed that the government’s stake in the bank had dropped by one percentage point to 26.95 per cent
It ended up holding an 84 per cent stake in NatWest after the hefty taxpayer bailout.
Since then, the Government has steadily been unwinding its stake in the bank.
In March 2022, the Treasury sold back NatWest shares to the company and its stake fell below the 50 per cent threshold for the first time since 2008.
Last month, this figure dropped below 30 per cent meaning that the government is no longer considered a controlling shareholder in the lender.
In the Spring budget, Chancellor Jeremey Hunt said it plans to sell all of its stake by 2026.
This will include a share offer to everyday investors this summer which the government hopes will create a ‘new generation of retail investors’.
So far, shares have only been sold to institutional investors.
NatWest chief executive Paul Thwaite said: ‘We are pleased with the recent momentum in the reduction of HM Treasury’s stake in the bank.
‘Returning NatWest Group to private ownership is a shared ambition and we believe it is in the best interests of both the bank and all our shareholders.’
Last month, the bank reported much lower first-quarter profits, amid peaking interest rates and mortgage lending pressures.
The group’s pre-tax profits slumped by 27 per cent to £1.33billion in the opening three months of 2024, although this was above analyst expectations of £1.26billion.
Total income fell by around £400million to £3.48billion following a drop in deposit balances and a shift by customers towards savings accounts offering higher returns.
