UK Government Stake in NatWest Falls Below 1% Amid Full Exit Plans

The UK government's stake in NatWest Group has fallen below 1%, marking a significant step towards the full privatization of the bank nearly 17 years after the 2008 financial crisis bailout. The Treasury's shareholding dropped from 1.98% to 0.9% after selling another tranche of shares, reducing its stake from a peak of 84% during the bailout. This reduction follows an accelerated sell-off since late 2023, which has seen the government's holding decline from 40% to below 1%, and the bank is on track to complete its exit by 2025-26. NatWest's revival, reflected in a 52% stock price increase over the past year and recent acquisitions led by CEO Paul Thwaite, has attracted global investors and supported the accelerated sale. The government is no longer considered a controlling shareholder, having fallen below 30% earlier this year, which also reduces transparency obligations. NatWest and the Treasury share the ambition to return the bank to full private ownership, viewing it as beneficial for all shareholders.