A stake of 30 per cent or more is defined under UK listing rules, so it is reported, as a controlling stake. The UK now owns less than that amount of the bank, one of the major groups in the UK financial sector.
The UK government’s stake in NatWest Group – parent
of Coutts – has fallen below 30 per cent to 29.8 per cent. This
means that the state is no longer regarded as being a controlling
shareholder in the UK lender.
The government is continuing to reduce its stake in the
lender – formerly known as Royal Bank of
Scotland – that was taken in the immediate aftermath of the
2008 financial crisis.
NatWest repurchased £1.3 billion ($1.64 billion) worth of the
shares through a directed buyback in May. Last week it asked
shareholders to approve a plan that would allow it to buy back
its stock from the UK state even more rapidly.
“We welcome the government’s continued commitment to returning
NatWest Group to private ownership. With the government
shareholding now below 30 per cent, we have been pleased with the
recent momentum to achieving this shared ambition, which we
believe is in the best interests of the bank and our
shareholders,” a spokesperson for NatWest Group said in an
emailed statement to this news service.
The government’s ownership of NatWest Group was 37.98 per cent at
the end of last year and at the end of 2022, it was 45.9 per
cent.
The banking group was rocked last year by revelations that
broadcaster and former UKIP party leader Nigel Farage was
“de-banked” by Coutts in circumstances suggesting his political
views were a factor. The unfolding of the saga led to the
resignations of NatWest’s CEO of the time, Alison
Rose, and Coutts’s CEO, Peter
Flavel. Both individuals have been replaced. In early
February, Flavel’s full-time successor, Emma Crystal, was
announced.
NatWest issued fourth-quarter financial results
here.
The government confirmed its plan to return NatWest to
private ownership by 2025/2026 in its spring budget earlier in
March. This could include a potential retail offer that
could take place as early as this summer.
