NatWest buys back £1 billion of shares from UK government, cutting state stake to about 11.4%

NatWest Group agreed on 11 November 2024 to buy 262,605,042 of its own ordinary shares from HM Treasury in an off-market purchase for a total consideration of £1 billion, reducing the UK government's shareholding in the lender from approximately 14.2% to approximately 11.4%.

The shares were bought at 380.8 pence each, the closing price on the London Stock Exchange on 8 November 2024, and represent 3.16% of NatWest's issued ordinary share capital excluding treasury shares. The bank said it intends to cancel all of the purchased shares, with settlement due on 13 November 2024.

SECOND DIRECTED BUYBACK OF 2024

The transaction was carried out under the directed buyback contract between NatWest and HM Treasury first approved by shareholders in February 2019 and most recently renewed at the bank's April 2024 annual general meeting. It followed an earlier off-market purchase of shares from HM Treasury, announced on 31 May 2024, worth about £1.24 billion.

Paul Thwaite, chief executive of NatWest Group, said: “As a result of NatWest Group's continued strong performance, we are pleased to have today completed our second buy back of government shares of 2024, further reducing HM Treasury's shareholding. This transaction represents another important milestone on the path to full privatisation.”

UK Government Investments (UKGI), which manages the holding on behalf of HM Treasury, said sales of shares under the government's trading plan, announced in July 2021 and most recently extended in April 2023, had not been paused in connection with the buyback. UKGI added that it and HM Treasury would keep further disposal options under consideration when market conditions permit and it is value for money to do so. NatWest said it continues to target a CET1 ratio in the range of 13–14%.