The Treasury is poised to dispose of its final stake in NatWest Group, drawing a close to one of the largest bank bailouts in global financial history.
Last night Sky News reported that the sale – expected within hours – would reduce the government’s holding to zero, nearly 17 years after it stepped in to rescue the then-Royal Bank of Scotland (RBS) with £45.5bn of taxpayer money.
The stake, once exceeding 80%, is now around 0.1%. Its disposal has been anticipated for weeks, with sources suggesting a formal announcement could come as soon as today or early next week, though timings remain subject to change.
COSTLY RECOVERY
The exit marks the end of a long and costly recovery for the UK taxpayer. Despite cumulative returns of approximately £35.3bn – including £13bn from a 2021 trading plan, £11.5bn from share sales and buybacks, £4.9bn in dividends, and £5.6bn in fees – the government is forecast to book a loss of just over £10bn on the bailout.
NatWest, now under chairman Rick Haythornthwaite and CEO Paul Thwaite, is focused on growth. The bank recently tabled a reported £11bn bid for Santander UK, though talks have since stalled.
Thwaite succeeded Dame Alison Rose, who departed amid the Nigel Farage “debanking” scandal. The bank has since settled with Farage.
The government’s intervention also included Lloyds Banking Group, which returned a net profit of £900m to taxpayers, and nationalised lenders such as Northern Rock and Bradford & Bingley, later absorbed by other institutions.
The Treasury and NatWest declined to comment.
