The government's long journey from crisis-era investments has been almost completed after Thursday's government revealed its stake in banks fell below 1%, a symbolic threshold that marks the near final of the UK's largest banking bailout.
The latest stock exchange application shows that the Treasury now has only 0.9% of the FTSE 100 lender, down from 1.98% at the end of April, following steady sales through custodial trading programs in previous months. Since 2021, the strategy has gradually released stocks into the market and is expected to fully relax government holdings within weeks.
Natwest, the Royal Bank of Scotland Group, nearly avoided a collapse during the 2008-09 financial crisis, when it was rescued from a £45.5 billion bailout, giving taxpayers an 84% stake in the agency. The scale of the rescue makes it one of the most prominent symbols of the crisis, and its return to private hands marks a decisive moment in the cleanup operation.
The government's historic government has swept the shares since George Osborne launched its first short sale in 2015. However, all share disposals have caused crystallization losses to taxpayers, and the stock trading is always below the average bailout price of 502p per share. NATWEST shares closed at 498p on Thursday, up 1%, putting them at breakeven distance.
Despite the losses, the government's withdrawal eliminated the ultimate legacy of the UK's all-financial rescue plan. Previous bailouts for Lloyds Banking Group, Northern Rock and Bradford and Bingley have collapsed, with Lloyds fully privatized in 2017.
NatWest CEO Paul Thwaite strengthened the bank's growth strategy to return to full private ownership. In recent months, the group has acquired most of Sainsbury's banking business and has secured a £2.5 billion mortgage portfolio from Metro Bank. Thwaite also made ambitious (but unsuccessful) to acquire Santander’s UK high street business.
A NATWEST spokesman welcomed the advancement: “Returning banks to full private ownership is an ambition we share with the government and we believe it is in the interests of all shareholders.”
The remaining Treasury stock is quietly unloading, avoiding large, disruptive sales. Once completed, the government’s departure will mark the end of a 16-year journey that has brought NATWEST to a sharp contraction, reorganized under the leadership of four CEOs and steadily rebuilding its reputation and balance sheet.
As the UK government prepares to finally close the book, one of the most turbulent chapters in British banking history, NATWEST is now firmly focusing on its future and proves that it can thrive in a fully privatized environment.
