- The Government’s stake in the banking giant fell 1% to 26.95%
NatWest has taken a further step towards fully private ownership after the Government sold another stake in the lender.
The Government’s stake in the bank has now fallen by one percentage point to 26.95 percent, as it continues with plans to sell all its shares by 2026.
NatWest came under public control in 2008, when the Government was forced to inject a total of £45.5bn (around £5 a share) into the affected 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 fallen by one percentage point to 26.95 percent.
It ended up having an 84 per cent stake in NatWest after the hefty taxpayer bailout.
Since then, the Government has steadily unwound its stake in the bank.
In March 2022, the Treasury sold NatWest shares back to the company and its stake fell below the 50 per cent threshold for the first time since 2008.
Last month, this figure fell below 30 percent, meaning the government is no longer considered a majority shareholder in the lender.
In the spring budget, chancellor Jeremey Hunt said he plans to sell his entire stake by 2026.
This will include a share offering for regular investors this summer that the government hopes will create a “new generation of retail investors.”
So far, the shares have only been sold to institutional investors.
NatWest chief executive Paul Thwaite said: “We are pleased with the recent momentum in reducing 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 peak interest rates and pressures on mortgage lending.
The group’s pre-tax profits fell 27 per cent to £1.33bn in the first three months of 2024, although this beat analysts’ expectations of £1.26bn.
Total income fell by around £400m to £3.48bn following a drop in deposit balances and a shift by customers towards savings accounts offering higher returns.