NatWest’s government ownership decreases to 11.4% as bank repurchases £1 billion in shares

November 11, 2024 TruthUSA

During the 2008-2009 financial crisis, taxpayers footed the bill to prop up the NatWest Group, with the government acquiring 84 percent of shares.

NatWest has bought back £1 billion of its shares from the government, bringing the banking group one step closer to full privatization, more than 15 years after the financial crisis bailouts.

The taxpayer-backed bank said on Monday it had bought 263 million shares from the Treasury at a price of 380.8p a share, bringing down government ownership of NatWest from 14.81 percent to 11.4 percent.

Paul Thwaite, the chief executive of NatWest Group, said the transaction “represents another important milestone on the path to full privatization.”

“We believe it is a positive use of capital for the bank and for our shareholders, and we are pleased with the sustained momentum in reducing HM Treasury’s stake in NatWest Group throughout this year,” Thwaite added.

The Treasury has gradually been selling off its share of the banking group, which also owns Coutts, hitting some milestones in the past 12 months, including government-owned shares falling below 20 percent in July. In March, ownership dropped below 30 percent, meaning that the government was no longer classed as a controlling shareholder of the bank.

During the 2008-2009 global financial crisis, taxpayers footed the bill to prop up the Royal Bank of Scotland, now known as NatWest Group, through several multi-billion-pound bailouts, with the government acquiring 84 percent of shares.

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