Government continues sell off of NatWest shares

The UK government has sold a further £1.26 billion of shares in the NatWest banking group, reducing its stake to 38.6%.

NatWest, which includes both the NatWest and Royal Bank of Scotland (RBS) high street banks, was brought largely under government control to protect the deposits of UK business and personal banking customers during the 2008 financial crisis and protect against further damage to the economy during this period. With the UK government owning an 84% stake in the banking group at its peak, the government has continued in its aims of returning NatWest fully to private sector ownership by 2025-26 with a further sell off of its shares.

Through a Directed Buyback, the government has returned a further £1.26 billion in shares in the banking group to the private sector at 268.4 pence each, the price at close of trading on the London Stock Exchange on 19th May 2023. Following the latest sale, the government shareholding is now 38.6%, down from 41.4%.

The Economic Secretary to the Treasury, Andrew Griffith commented:

“Today’s [22nd May 2023] sale is another major milestone in returning NatWest to full private ownership as promised. The government has now sold well over half of its shareholding.”

This is the sixth block sale of NatWest shares since bailing out the bank in 2008, a move which the Office of Budget Responsibility has said did mitigate the impact of the 2008-09 global financial crash. The government has also confirmed it will only dispose of its NatWest shareholding when it represents value for money to do so and market conditions allow.