Government Continues to Divest Stake in NatWest Following Debanking Scandal a Year Ago
In July 2023, the chief executive of NatWest Group resigned amidst the Nigel Farage debanking scandal. As a result, the government has decided to sell off some of its shares.
The government has successfully sold £1.24 billion worth of shares in NatWest, marking a significant step after the chief executive’s resignation in connection to the Farage debanking scandal. Dame Alison Rose stepped down following revelations of a meeting with a BBC journalist researching Nigel Farage’s accounts with the private bank Coutts, under NatWest Group’s wealth management division.
After Dame Alison’s resignation, Chancellor Jeremy Hunt expressed concerns over her handling of Mr. Farage’s bank account closures. Subsequently, the Treasury has confirmed the sale of part of its NatWest shares, reducing its ownership from 25.9 percent to 22.5 percent.
Following the 2008/09 financial crisis, the government bailed out several British banks, including what was then known as the Royal Bank of Scotland (RBS) group. In 2020, RBS was rebranded as NatWest Group, and the Treasury has been gradually reducing its stake in the bank.
Despite plans for a public share sale this summer, the general election forced a delay. The government intends to resume this process after July 9, aiming to achieve full private ownership by 2025 or 2026. NatWest Group’s chief executive, Paul Thwaite, sees this as a positive step towards the bank’s profitability and growth.
Throughout the debanking scandal of the summer of 2023, the NatWest Group faced challenges, with the resignation of Dame Alison and the subsequent sale of shares. An external review by law firm Travers Smith concluded that Coutts’ decision to close Mr. Farage’s accounts was predominantly “commercial.” Mr. Farage, now a member of Reform UK, criticized the report as a “work of fiction.”
As the political landscape evolves, NatWest Group continues its focus on customer service and shareholder value, aiming to contribute to the UK economy positively.
PA Media contributed to this report.
