The government has sold £1.24 billion worth of shares in NatWest, 10 months after the chief executive stepped down in the wake of the Nigel Farage debanking scandal.
Following Dame Alison’s resignation, the Chancellor Jeremy Hunt said he had “significant concerns” about how she handled the closure of Mr. Farage’s bank accounts.
This week Mr. Hunt’s department, the Treasury, confirmed it had sold off part of its stock of NatWest shares.
A notice on Friday confirmed the government’s shareholding in the bank had fallen to 22.5 percent from 25.9 percent.
In March the Treasury sold off part of its shares and said it was below 30 percent and therefore no longer a “controlling shareholder.”
NatWest was one of a number of British banks that were bailed out by the previous Labour government during the 2008/09 financial crisis.
In October 2008 the government took a controlling stake in what was then known as Royal Bank of Scotland (RBS) group and it ended up with an 84 percent share.
Group Was Rebranded in 2020
In 2020 RBS was rebranded as NatWest Group.The Treasury has been gradually selling off its stake in the bank, which also owns Coutts.
The process accelerated this year when in the Spring Budget Mr. Hunt confirmed plans to completely sell off the Treasury’s shares by 2025 or 2026.
Mr. Hunt has planned to include a public share sale this summer and said he wanted to create a “new generation of retail investors,” but when Prime Minister Rishi Sunak called the general election for July 4 that sale had to be shelved.
A Treasury spokesman said, “A retail offer will not happen during the election period.”
The government’s shares have so far been sold to institutional investors but it is possible a public sale may take place after Parliament resumes on July 9, although by then Mr. Hunt may have been replaced by shadow chancellor Rachel Reeves.
Paul Thwaite, chief executive of NatWest Group, said, “This transaction represents another important milestone for NatWest Group, building on recent momentum in the reduction of HM Treasury’s stake in the bank.”
“We believe it is a positive use of capital for the bank and for our shareholders and represents further progress against the ambition to return NatWest Group to full private ownership,” he said.
Mr. Thwaite said, “Our focus remains on delivering for our customers which will, in turn, deliver for our shareholders and the UK economy.”
The NatWest Group had a troubled summer in 2023 with the debanking scandal dominating headlines for several weeks.
Dame Alison was given a £2.4 million severance package, which included her £1.155 million in salary for the year, £1.155 million in NatWest shares, and £115,566 in pension payments.
She resigned after bank accounts of broadcaster and former UKIP leader Mr. Farage were closed in June 2023.
Travers Smith said while the evidence, including documents and witness accounts, “was not entirely consistent,” it considered “on balance” the decision to close the former Brexit Party leader’s accounts was predominantly “commercial,” while noting “there is no universally agreed definition” of the terms “commercial” and “political.”
Mr. Farage denounced the report as a “work of fiction.”
