The banking giant NatWest is poised to achieve a significant milestone as it approaches complete private ownership, marking the end of a 16-year journey since its £45 billion taxpayer bailout during the 2008 financial crisis.
The transformation from state control has been a lengthy process, with the government’s stake now reduced to below 10 per cent. The journey to privatisation has come at a considerable cost to British taxpayers, who are facing an estimated £20 billion loss on their initial investment, though this figure improves to approximately £10 billion when including dividends and fees paid by the bank.
Current Chief Executive Paul Thwaite, who assumed leadership following Dame Alison Rose’s departure in July 2023, is orchestrating a strategic shift towards growth sectors. The bank’s recent performance has been remarkable, with shares surging over 80 per cent in the past year to reach 403p, making it one of the FTSE 100’s top performers.
The bank’s evolution since the crisis has been dramatic. The workforce has contracted from 200,000 to 60,000, while its geographical focus has shifted predominantly to the UK market, now accounting for 95 per cent of revenue compared to 62 per cent pre-crisis. The institution has divested numerous businesses, including Worldpay and Direct Line, as part of its restructuring efforts.
Looking ahead, NatWest appears set to pursue growth in areas less dependent on interest rates. Industry analysts suggest Thwaite may target expansion in mortgage lending and wealth management, potentially through strategic acquisitions. The bank’s wealth management arm, including the prestigious Coutts brand, presents particularly attractive growth opportunities.
The complete return to private ownership represents more than just a financial milestone; it symbolises NatWest’s transformation from a cautionary tale of banking excess to a testament of successful restructuring and renewal in British banking.
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