Dec 4, 2024, 12:01 AM
Dec 3, 2024, 12:00 AM

NatWest poised for full private ownership by mid-2025

Highlights
  • The UK government is nearing a complete exit from its stake in NatWest, reducing ownership from 54.7% to less than 11%.
  • CEO Paul Thwaite indicates that the bank could achieve full private ownership by mid-2025.
  • The transition will mark an important milestone for NatWest and the UK banking sector after years under government ownership.
Story

In the United Kingdom, NatWest Group is on track to return to full private ownership after years of government intervention following the 2008 banking crisis. The UK government had taken a 54.7 percent stake in the bank, then known as Royal Bank of Scotland (RBS), after spending nearly £46 billion during the bailout. Over the years, NatWest has made significant strides in reducing the public stake, decreasing it from 38 percent in December 2023 to below 11 percent today, largely due to share buy-backs and gradual government sell-offs in the market. Recently, CEO Paul Thwaite spoke at an FT Banking Summit in London, expressing optimism that the bank will regain full private status by around mid-2025. This shift marks not only a significant transition for NatWest but also symbolizes closure for the wider UK banking sector, helping to draw a line under a tumultuous episode stemming from the financial crisis. Thwaite's assurance came amid the ongoing efforts by the Treasury, which abandoned plans for an initial public offering of shares this past summer, opting instead to slowly release shares into the market to maximize the benefits of a climbing share price. As of December 4, 2024, NatWest shares are trading at their highest levels since 2011, reflecting the positive sentiment within the market regarding the potential exit of the government. Thwaite believes that this optimism brings renewed focus on the future of the bank rather than its troubled past. He emphasized that if there are no significant economic disruptions, NatWest will be back in private hands in a timely manner, allowing for a more forward-looking discussion about its prospects and achievements. In conclusion, the anticipated full exit of the government from NatWest will symbolize a critical juncture for the bank and the banking sector as a whole. It underscores the resilience of NatWest in navigating through crises while paving the way for renewed growth and strategic focus as a fully private entity. This momentous change will also be historic as Thwaite will be the first CEO to oversee NatWest as a completely privately owned institution since Fred Goodwin's tenure, marking a fresh chapter for the bank's long-standing history.

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