The Treasury is forging ahead with its plans to bring NatWest back into private ownership.
On Monday, it was confirmed that the Government's shareholding in the bank has dropped by around one percentage point to 26.95%. The 2008 and 2009 financial crises led to several multibillion-pound bailouts for NatWest, at that time known as Royal Bank of Scotland, resulting in the Government taking ownership of an 84% stake.
The shares, which includes Coutts, has been steadily sold off by the Treasury in recent years. This process has gained momentum, with chancellor Jeremy Hunt reiterating the Government's commitment in the Spring budget to sell all its interest in the bank by 2025 or 2026.
A public share sale this summer is also being considered in a bid to create a "new generation of retail investors". Previously, blocks of shares have been sold exclusively to institutional investors. Plans this summer, however, would see NatWest shares available for individual purchase for the first time.
From having a 62% stake in NatWest group in 2018, the Government's ownership had decreased to 37.98% by December last year. This March saw ownership dip below 30%, seening the Government end its status as a controlling shareholder in NatWest.
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NatWest kickstarted the year with a plea to shareholders, requesting their backing for an increase in the volume of stock the bank could annually repurchase from the Government, from slightly under 5% to 15%. Paul Thwaite, the chief executive of NatWest, 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." Mr Thwaite took up his position at the helm of NatWest last year following Dame Alison Rose's resignation amid the 'debanking' scandal linked to Nigel Farage.
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