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 Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the 'covid era' and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine's coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk
