NatWest has purchased £1 billion of its own shares from the UK Treasury, lowering the government’s stake in the FTSE 100 lender to just over 11%.

This buyback, the second of its kind in 2024, saw NatWest acquire 263 million shares at a price of 380.8p each, a step CEO Paul Thwaite describes as an “important milestone on the path to full privatisation.”

The government’s stake in NatWest, formerly Royal Bank of Scotland, was as high as 84% after the 2008 financial crisis bailout. Over recent years, the state has gradually reduced its ownership through share sales to institutional investors and buybacks. In 2024 alone, NatWest has repurchased £2.2 billion of shares from the Treasury, cutting the government’s holding by over two-thirds since December.

The Labour government cancelled plans for a public share sale of NatWest in June, which was expected to offload part of the government’s 20% stake but was scrapped due to concerns it could cost taxpayers up to £450 million. The “Tell Sid”-style public offering was initially proposed by the previous Conservative government.

The Treasury’s latest sale continues the trend of privatising the bank, which has been a key objective since the taxpayer-funded bailout over a decade ago.

Jamie Young

Jamie is a seasoned business journalist and Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting. Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops to stay at the forefront of emerging trends. When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs, sharing their wealth of knowledge to inspire the next generation of business leaders.