NatWest Share Buyback Reduces Government Stake to 114 Per Cent in £1 Billion Pound Deal

In a significant move towards complete privatisation, NatWest has executed a £1 billion share buyback from the Treasury, diminishing the government’s ownership to 11.4 per cent. The FTSE 100 bank purchased 263 million shares at 380.8 pence each, marking a substantial reduction from the 14.81 per cent stake recorded at October’s end.

NatWest’s Chief Executive, Paul Thwaite, expressed satisfaction with the bank’s second government share buyback of 2024, emphasising its strategic importance in the journey towards full privatisation. The transaction represents a prudent use of capital benefiting both the bank and its shareholders.

The bank, formerly Royal Bank of Scotland, has demonstrated remarkable progress in reducing state ownership since its financial crisis bailout, which initially resulted in an 84 per cent government stake. Through a combination of institutional investor sales and share buybacks, NatWest has successfully repurchased £2.2 billion of state-owned shares in 2024 alone.

Labour’s recent decision to abandon the proposed “Tell Sid”-style public share sale highlights a shift in privatisation strategy. The scheme, originally conceived by the Conservative government in November, was scrapped due to concerns over potential costs to taxpayers, estimated at £450 million.

The successful execution of this buyback demonstrates NatWest’s strengthening financial position and represents a crucial milestone in its transformation from a state-supported institution to a fully private enterprise. The systematic reduction in government ownership continues to reshape the bank’s corporate structure and governance framework.

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bankingFTSE 100government stakeNatWestprivatisationshare buyback