Government sells another chunk of its stake in NatWest ahead of planned summer share sale

NatWest received several multibillion-pound bailouts during the financial crisis in 2008 and 2009, leaving the Government with an 84 per cent stake in what was then known as Royal Bank of Scotland.

But the Treasury has been selling down its stake in the lender, which also owns Coutts.

The process has accelerated of late, and chancellor Jeremy Hunt reaffirmed the Government’s plan to sell all of its interest in the bank by 2025 or 2026 in the Spring budget.

It will also include a public share sale this summer as part of an attempt to create a “new generation of retail investors”.

So far, the blocks of shares have been sold to institutional investors, but the summer plans would be the first time its NatWest stock is on sale to individuals.

In 2018 the Government owned 62 per cent of the group, which had fallen to 37.98 per cent in December.

In March, that fell below 30 per cent, meaning the Government is no longer classed as a controlling shareholder in the lender.

Earlier this year, NatWest wrote to shareholders asking to support an increase in the amount of stock the bank could buy back from the Government in a year, from just under 5 per cent to 15 per cent.

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 chairman of NatWest said the banking sector is “evolving rapidly” as he acknowledged that the lender faced “unexpected challenges” during 2023.

Rick Haythornthwaite, who stepped into the role last month, made the comments as he addressed the bank’s shareholders at its annual general meeting (AGM).

He said: “Clearly 2023 was an exceptional year, that brought challenges for our customers, our sector, and the economy, as families and businesses faced into the fastest rate rise cycle since the 1970s with persistently high levels of inflation.

“The year brought unexpected challenges for the bank but our foundations and performance are strong – in fact profits for 2023 were at the highest level they have been since before the 2008 financial crisis.”

Mr Thwaite, speaking at the AGM in Edinburgh, stressed that NatWest is “prioritising bank-wide simplification to become more efficient and effective”.

This will involve using automation and artificial intelligence (AI) technology to speed up processes. Mr Thwaite said the bank has worked with technology partners to bring five legacy systems together into one single customer platform in its retail arm.