Government Sells Final Stake: NatWest Returns to Private Hands

A New Chapter: NatWest Returns to Private Ownership Post-Bailout

NatWest has officially returned to full private ownership for the first time since its 2008 bailout, as the UK government has sold its remaining stake in the bank. This marks the conclusion of a 17-year journey that began when taxpayers invested £45.5 billion to rescue the then-Royal Bank of Scotland during the global financial crisis.

The final sale, involving less than 1% of NatWest’s shares, was completed at a price of 523 pence per share. Despite recent gains in the bank’s share price, the overall cost to taxpayers stands at approximately £10.5 billion, as many earlier share sales occurred below the initial bailout price of 502 pence per share. Nevertheless, Chancellor Rachel Reeves emphasized the necessity of the intervention at the time to protect savers and businesses, celebrating the return of NatWest to private ownership.

Since rebranding from RBS to NatWest in 2020, the bank has refocused on domestic mortgage and business lending. With the government’s exit, NatWest now faces political expectations to drive economic growth, especially under the Labour government, and may pursue further acquisitions to expand its fee-based income as competition intensifies among major lenders.

This development signifies the end of the UK’s direct involvement in the banking sector, concluding a significant chapter in the nation’s economic history.