The government has relinquished its position as NatWest’s biggest shareholder for the first time in more than 15 years, with its stake slipping to 5.93 per cent.
This marks a significant moment in the state’s retreat from the £45.5 billion bailout of the bank—then known as Royal Bank of Scotland—during the 2008 financial crisis, when the taxpayer’s holding stood at almost 85 per cent.
BlackRock, the American investment behemoth, has emerged as NatWest’s top shareholder with a 6.4 per cent interest. The Treasury has been steadily trimming its stake via a “drip” trading programme, which sells shares at a level deemed “fair value” for taxpayers. NatWest itself has also participated by buying back shares directly.
Paul Thwaite, the bank’s chief executive, predicts NatWest will be fully privatised by the end of 2025. The lender recently reported a slight rise in pre-tax profits to £6.2 billion, boosted by fewer bad loan charges than expected. Thwaite’s strategy includes further cost-cutting, following a 3 per cent headcount reduction to 59,200 in 2024, and he remains open to further acquisitions—although he insists deals must deliver clear shareholder value.
NatWest was once propped up at a time when the bold expansion tactics of former chief executive Fred Goodwin contributed to the bank’s near collapse, most notably through the ill-fated takeover of Dutch rival ABN Amro. The demise of RBS forced the government into a multi-billion-pound rescue, leaving taxpayers with a substantial stake. Now, with shares trading around 478¾p, the state is finally nearing a full exit.
A NatWest spokeswoman commented: “Returning the bank to full private ownership is an ambition we share with the government and one that is in the interest of all our stakeholders.”
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Taxpayers lose largest-shareholder status in Natwest as Blackrock overtakes government stake