NatWest has bought back another £1bn worth of shares from the Treasury as the Government continues to lower its stake in the bank.

The latest move, which will see NatWest purchase more than 262.6 million shares at 380.8 pence each, has taken the Treasury’s shareholding in NatWest from 14.2% down to 11.4%.

NatWest was nationalised during the 2008 financial crisis, when a £46bn bailout left the Government with an 84% stake in the bank, which at the time was known as the RBS Group.

Since then, the Government has been gradually reducing its shareholding in the bank, and the Treasury’s stake was still as high as 38% in December last year.

Conservative plans at the beginning of 2024 under the former Chancellor, Jeremy Hunt, had also proposed a retail sale of NatWest shares to members of the public in an effort to raise funds for the Treasury.

However, at the Labour Budget two weeks ago under the current Chancellor, Rachel Reeves, the Treasury said it was “stopping programmes that are no longer priorities”, which included the retail sale of NatWest shares.

The latest transaction means the Government has now recouped more than £20bn from the sale of shares that it has held since the 2008 bailout.

NatWest CEO, Paul Thwaite, commented: “As a result of NatWest’s continued strong performance, we are pleased to have today completed our second buy back of Government shares of 2024, further reducing HM Treasury's shareholding.

“This transaction represents another important milestone on the path to full privatisation. We believe it is a positive use of capital for the bank and for our shareholders and we are pleased with the sustained momentum in reducing HM Treasury’s stake in NatWest throughout this year.”

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