Treasury Plans to Complete NatWest Sell-Off by Mid-2025
- The Treasury's stake in NatWest Group has decreased significantly, with a potential stock placement that could expedite the sell-off process.
- The sell-off stems from a 17-year recovery effort following the bailout of the banking sector during a financial crisis.
- If current trends continue, the government aims to fully return NatWest to private ownership sooner than expected, highlighting a shift towards privatization.
In the United Kingdom, the Treasury is set to finalize its sale of the taxpayer's stake in NatWest Group by May 2025, possibly sooner if additional share placements occur. The state’s ownership, which was at 38% at the beginning of 2024, has seen a significant decline to just under 16%. Recent disclosures may soon reveal that the stake has dipped below 15% as the Treasury undergoes a systematic reduction of its investment, aiming to return the remaining shares to private hands. This sell-off follows a 17-year timeline that began with the government intervening during the financial crisis when British banks required substantial state aid. Throughout this period, the Treasury has faced considerable losses despite receiving dividends and other fees from the bank. Overall, the government's investment in NatWest is set against a backdrop of previous successful divestitures, with Lloyds Banking Group fully exited in 2017 and Northern Rock sold to Virgin Money. Market analysts believe that the final shares might be sold even before the 2025 deadline if favorable market conditions persist, reflecting a substantial shift in government policy towards privatisation of previously state-owned banks. The Treasury's decision is also likely influenced by a broader objective to recover financial losses stemming from past investments made to stabilize key banking institutions during crises.