Royal Bank of Scotland owner NatWest Group has taken another significant step towards returning to full private ownership, as the taxpayer’s stake in the bailed-out lender has now dropped below 3 per cent.
The UK government has been steadily reducing its holding through an ongoing trading plan, whereby shares are sold into the market on a regular basis. A recent stock exchange update confirmed that the Treasury’s shareholding in NatWest has now fallen to 2.99 per cent.
In the previous year, the government’s stake fell sharply, from approximately 38 per cent in December 2023 to just under 10 per cent a year later. This reduction was achieved through a combination of the trading plan and two directed share buybacks.
The sale of shares by UK Government Investments is part of the state’s efforts to reduce its holding in the RBS parent, following its near £46 billion bailout during the 2008 financial crisis.
Shares in FTSE 100-listed NatWest have risen by almost 13 per cent so far in 2025, and are up by more than 60 per cent over the past 12 months.
A spokesperson for NatWest Group commented: “Returning the bank to full private ownership is an ambition we share with the government, and one that we believe is in the interests of all our shareholders. We welcome the progress that the Treasury continues to make, having reduced its shareholding in the bank from nearly 40 per cent in December 2023 to below 3 per cent today.”
In February, NatWest Group reported a better-than-expected annual profit as the bank moves closer to private ownership. At the time, chief executive Paul Thwaite said that shedding the UK Treasury’s remaining shareholding would mark a “new, forward-looking chapter” for the banking group. The company reported an operating pre-tax profit of £6.2 billion in 2024, up 0.3 per cent on 2023 and slightly ahead of analysts’ expectations.
NatWest attributed its performance to lending growth during the year, with increased mortgage demand as the property market improved and following the acquisition of Metro Bank’s loan book. Deposits also rose year-on-year as savings balances grew, offsetting a decline in current account balances.
Thwaite said: “As we enter a new, forward-looking chapter for NatWest Group , I am optimistic about the opportunities ahead of us to grow our business as a vital and trusted partner to our customers and the UK itself and, in doing so, create further value for our shareholders.”
He added that the group was continuing its efforts to build a “simpler, more integrated and technology-driven bank”, with a focus on cost savings across the business.
Zoe Gillespie, investment manager at RBC Brewin Dolphin, observed: “NatWest is in fine fettle. On this trajectory, NatWest could potentially return to full private ownership this year and, with that, new opportunities may open up to the bank.”
