Treasury sells more of its NatWest stake ahead of planned summer share sale

The Government has sold another chunk of its stake in NatWest, continuing the process of bringing the high street bank into private ownership.

A notice on Monday confirmed that the Government’s shareholding in the bank has fallen by about one percentage point to 26.95%.

NatWest received several multibillion-pound bailouts during the financial crisis in 2008 and 2009, leaving the Government with an 84% stake in what was then known as Royal Bank of Scotland.

But the Treasury has been selling down its stake in the lender, which also owns Coutts.

The process has accelerated of late, and chancellor Jeremy Hunt reaffirmed the Government’s plan to sell all of its interest in the bank by 2025 or 2026 in the Spring budget.

It will also include a public share sale this summer as part of an attempt to create a “new generation of retail investors”.

So far, the blocks of shares have been sold to institutional investors, but the summer plans would be the first time its NatWest stock is on sale to individuals.

In 2018 the Government owned 62% of the group, which had fallen to 37.98% in December.

In March, that fell below 30%, meaning the Government is no longer classed as a controlling shareholder in the lender.

Earlier this year, NatWest wrote to shareholders asking to support an increase in the amount of stock the bank could buy back from the Government in a year, from just under 5% to 15%.

NatWest chief executive Paul Thwaite said: “We are pleased with the recent momentum in the reduction of HM Treasury’s stake in the bank.

“Returning NatWest Group to private ownership is a shared ambition and we believe it is in the best interests of both the bank and all our shareholders.”

Mr Thwaite took the reins at NatWest last year after his predecessor, Dame Alison Rose, resigned over a so-called debanking scandal involving Nigel Farage.