Taxpayers’ stake in NatWest falls below 1% – Daily Business

NatWest’s return to full privatisation is due within weeks after more selling of the taxpayers’ shareholding in the former Royal Bank of Scotland fell below 1%.

The Treasury’s stake is down to 0.9% from 1.98% last month and its exit will be a milestone moment for the bank, which is headquartered in Scotland.

RBS was within hours of collapse in 2008 until Chancellor at the time, Alistair Darling, stepped in to take an 84% stake costing £45.5 billion.

A steady series of sales of shares, initiated by George Osborne, has accelerated in recent months and while each sale has been at a loss it has returned funds to the Treasury.

NatWest stock is now close to the 502p-a-share average price at which the state rescued the bank, closing last night at 498p.

Its revival coincides with a recovery in the bank’s balance sheet which has seen it return to the M&A market.

New chief executive Paul Thwaite has led two transactions to acquire most of Sainsbury’s banking operations and a £2.5 billion mortgage portfolio from Metro Bank.

It was revealed recently that he attempted the more ambitious acquisitioj of Santander’s UK high street business.

A NatWest spokesman said: “Returning the bank to full private ownership is an ambition we share with the government, and one that we believe is in the interests of all our shareholders. We welcome the progress that the Treasury continues to make.”

New permanent secretary

Jim O’Neil, who took a key role in the handling the government’s holdings in the rescued banks. has been appointed as a second Permanent Secretary to the Treasury.

He spent a career in investment banking and corporate finance and three years at UK Financial Investments.

As chief executive of UKFI, he managed the government’s holdings in Royal Bank of Scotland, Lloyds Banking Group, and UK Asset Resolution.