Site icon Daily Business

NatWest (RBS) back in majority private control

Royal Bank of Scotland HQ at Gogarburn (pic: Terry Murden)

The taxpayers’ stake in NatWest (RBS) has fallen below 50% following an off-market buyback of shares from the Treasury.

It marks a key milestone in the former Royal Bank of Scotland’s recovery from the 2008 financial crash with the bank no longer a subsidiary of government.

The acquisition of 549,851,147 ordinary shares at 220.5p per share represents 4.91% of the bank’s share capital. It raised £1.2bn for the Treasury and reduces its stake to 48.06%. NatWest intends to cancel all of the purchased shares.

The Labour government at the time spent £45 billion bailing out the bank following the meltdown of the banking sector in 2008.

Chief exectutive Alison Rose, said: “We believe this transaction to be a good use of capital for the bank and our shareholders. Reducing government ownership below 50% is an important milestone for NatWest Group and a further demonstration of the progress we are making as we continue to deliver for our customers and shareholders.

“We are proud of the role we play in supporting our 19 million customers throughout the UK, including one in four businesses. By delivering on our strategic priorities, and by forging closer and deeper relationships with our customers at every stage of their lives, we will help them to grow and to thrive. Because if they thrive, and if the UK economy thrives, so will we.”

Exit mobile version