Government quietly lowers stake in Natwest as it crystallises loss for taxpayers
The government has sold 1.03 per cent of its shares in Natwest over the last month as it continues to quietly reduce its stake in the bank and solidify a loss for taxpayers.
The Treasury reduced its stake from 37.97 per cent to 36.94 per cent by selling just over 91m shares between 8 December 2023 and 2 January 2024, according to a stock exchange filing by Natwest.
Natwest and the Treasury said they were unable to disclose how much the shares were sold for. The stock closed at 220p on Tuesday, with a market capitalisation of around £19.5bn.
The government lowered its stake from 38.53 per cent to 37.97 per cent between May and December last year.
It acquired an 84 per cent stake in the lender, then known as Royal Bank of Scotland, during the financial crisis in 2008 and has been trying to unwind the position ever since. The government plans to fully sell its shares by 2026.
However, the taxpayer has lost out as the bank’s shares have tumbled far below the 499p average price paid by the government.
The stock fell below 200p in October and November as the bank’s public image suffered from the fallout of a row with former Ukip leader Nigel Farage over the closure of his Coutts account.
Then chief executive Dame Alison Rose resigned in July after she admitted to discussing the Brexiteer’s Coutts account with the BBC.
The scandal prompted a wide-ranging inquiry into so-called “debanking” by the City watchdog, as well as a surge in complaints over the issue.
Chancellor Jeremy Hunt has said the government is looking at a Tell Sid-style share sale plan for Natwest, offering its stake to retail investors.
A Treasury spokesperson told City PM: “This update shows that our ongoing trading plan continues to make progress towards the government’s objective to return its shareholding in Natwest to private ownership in a way that represents value for money to taxpayers.”
A Natwest spokesperson said: “Any decisions around share sales are a matter for the government. We welcome the government’s continued commitment to returning Natwest to private ownership and believe this is in the best interests of the bank and our shareholders.”