LONDON (Reuters) – NatWest has bought back 1 billion pounds (1.21 billion euros) of its own shares from the British government, the bank announced on Monday, as it continues its privatization after its bailout by London during the financial crisis of 2008.
UKGI, which manages the government’s stake in the bank, said that following the transaction the government’s share of NatWest would fall from around 14% to 11%.
This operation is the final stage of the privatization of NatWest, which began almost two years ago, after the bank was rescued by the State during the 2008 crisis.
“This transaction represents another important step on the path to full privatization,” Paul Thwaite, the bank’s chief executive, said in a statement.
“We believe this is a positive use of capital for the bank and for our shareholders,” he added.
The deal is the second such buyback in the past 12 months and brings the total number of shares NatWest bought back from the government this year to 2.2 billion, or almost 8% of the bank’s capital.
The state’s stake in Natwest fell from around 38% at the end of December 2023 to 11% following Monday’s transaction.
(Reporting Lawrence White, Elena Smirnova, editing by Kate Entringer)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
