The UK government has sold its final shares in NatWest Group, ending 17 years of state ownership that began with a £45bn taxpayer bailout during the 2008 financial crisis. The full privatisation of the banking group, formerly known as Royal Bank of Scotland (RBS), marks a symbolic conclusion to a tumultuous chapter in the bank's history.
The sale comes at a £10bn loss to the taxpayer, with the state recouping only about £35bn of its costs, as shares have long traded below the average 502p paid in the bailout. This contrasts with the £900m profit from the sale of Lloyds Banking Group, privatised in 2017 after receiving £20.3bn in state aid.
Chancellor Rachel Reeves said: 'Nearly two decades ago, the then-government stepped in to protect millions of savers and businesses from the consequences of the collapse of RBS. That was the right decision then to secure the economy and NatWest’s return to private ownership turns the page on a significant chapter in this country’s history.'
RBS became a symbol of the banking sector's implosion during the financial crisis, following its aggressive expansion under former chief executive Fred 'The Shred' Goodwin. In 2007, it led a consortium to buy Dutch bank ABN Amro for £49bn, briefly making RBS the world's largest bank. The bailout left the government with an 84% stake, forcing years of restructuring, job cuts, and a rebranding to NatWest in 2020.
NatWest finally returned to profit in 2018, and the government slowly sold its stake through dividends, share sales, and buybacks. NatWest chief executive Paul Thwaite said: '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.'
