The UK government is on the verge of fully exiting its crisis-era stake in NatWest, marking the near-conclusion of one of the country’s most high-profile financial rescues. A regulatory filing on Thursday revealed that the Treasury’s holding in the bank has fallen below 1% — a symbolic milestone that signals the final stages of the unwinding process.
The government now owns just 0.9% of NatWest Group, down from 1.98% at the end of April. The reduction follows a series of incremental sales under a managed trading plan introduced in 2021, which gradually feeds shares into the market. The Treasury is expected to dispose of its remaining shares within weeks.
NatWest, formerly Royal Bank of Scotland, was rescued at the height of the 2008 financial crisis with a £45.5 billion bailout. At its peak, the government held an 84% stake in the bank, making it the largest state-owned commercial lender in British history. The move was part of a broader effort to stabilise the UK’s banking system, alongside interventions in Lloyds Banking Group, Northern Rock, and Bradford & Bingley.
All sales of NatWest shares have taken place at a loss to taxpayers, as the stock has consistently traded below the average bailout price of 502p per share. However, shares closed at 498p on Thursday — just shy of the break-even point — offering some relief for officials as the final exit nears.
Despite the financial losses, the move represents the end of a long chapter in post-crisis recovery. The UK’s holdings in Lloyds and other rescued banks have already been sold off, with Lloyds returning to full private ownership in 2017.
A NatWest spokesperson described the development as a positive step: “Returning the bank to full private ownership is an ambition we share with the government, and one that we believe is in the interests of all our shareholders.”
Under CEO Paul Thwaite, NatWest has been pursuing growth through targeted acquisitions. The bank recently took over most of Sainsbury’s banking operations and acquired a £2.5 billion mortgage book from Metro Bank. It also explored a bid for Santander’s UK high street operations, though the attempt was unsuccessful.
Once the Treasury completes its final sale, it will close the book on a 16-year journey that saw NatWest undergo major restructuring, shrink its global footprint, and restore financial stability — all while under the partial ownership of the British state.
