NatWest Group returns to full private ownership

Rick Haythornthwaite and Paul Thwaite at NatWest AGM
Rick Haythornthwaite and Paul Thwaite: significant moment (pic: Terry Murden / DB Media Services)

NatWest Group has today confirmed that it has returned to full private ownership, with the Treasury no longer holding any shares in the business.

The taxpayer took an 84.4% stake in the bank through two separate injections of support in 2008 and 2009 with the bank, then known as Royal Bank of Scotland, just hours from collapse.

Under the leadership of Fred Goodwin it had embarked on a series of highly ambitious acquisitions and pumped complex financial instruments into the market which came unstruck in a global meltdown.

The injection of taxpayers’ funds was led by Chancellor at the time Alistair Darling who was faced with seeing the bank collapse.

Since then it has been nursed back to health under four chief chief executives – Stephen Hester, Ross McEwan, Alison Rose and Paul Thwaite – who have overseen a huge shrinkage of the balance sheet and withdrawal from some markets.

Alistair Darling PLSA conf
Alistair Darling led the rescue of RBS, now NatWest (pic: Terry Murden / DB Media Services)

In recent months there has been an acceleration in the sale of shares into the open market.

To date, £35 billion has been returned to the Exchequer through share sales, dividends and fees.

The Treasury said: “While this is around £10.5bn less than the original support, the alternative would have been a collapse with far greater economic costs and social consequences.

“The Office for Budget Responsibility are clear on this point: the cost of doing nothing would almost certainly have been far greater than the difference between the capital injected and proceeds returned.  

“Allowing the bank to fail would have devastated people’s savings, mortgages and livelihoods — and shattered confidence in the UK’s financial system.”

Previous Chancellor Jeremy Hunt wanted to stage a retail sale of the remaining shares to the public which would have gone ahead at this time last year. It was pulled because of the general election. Incoming Chancellor Rachel Reeves decided to drop the plan, saying “it could have cost taxpayers hundreds of millions. Instead, we put taxpayers first by only selling NatWest shares at market value.”

Fred Goodwin at Balmoral
Fred Goodwin making a rare public appearance in February 2020 (pic: Terry Murden / DB Media Services)

NatWest Group chair, Rick Haythornthwaite,said: “As NatWest Group returns to full private ownership for the first time since 2008, we remain deeply grateful to the government – and to UK taxpayers – for their intervention and support.

“At a time of global crisis, this intervention stabilised our banking system and, by extension, our economy; protecting millions of savers, homeowners and businesses. 

“Banks in the UK have changed beyond recognition since 2008. So too the regulatory environment and culture across the City. Critically, the pace of technological advances has fundamentally altered how people live and work, including how they choose to access financial services and manage their money. 

“We are at an inflexion point not just for our bank, but for the wider economy.  Growth is once again at the top of the national agenda and the financial services sector has an important role to play, driving investment and job creation throughout the country – all in the service of our customers.” 

Mr Thwaite added: “This is a significant moment for NatWest Group, for all those who work here and for the UK more widely. As we turn the page on the financial crisis, we can look to the future with confidence, without forgetting the lessons of the past.

“I am proud to have been part of the team that has helped build a simpler, safer, more customer-focussed bank. It is thanks to the incredible loyalty of our customers and colleagues, along with the support of our shareholders – including the UK taxpayer – that this change has been possible. 

“Today we have a strategy that is working, positive momentum in our business and a clear ambition to succeed with our customers.

“This is a sector that matters; strong economies need strong banks, and vice versa. At a time when there is a clear intent to deliver growth, NatWest is ready to step up to the challenge, shaping our future as a vital and trusted partner to our customers and to the UK itself.” 


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