NatWest nears full privatization as government stake drops

LONDON - NatWest Group plc announced at its Annual General Meeting today that the UK government’s stake in the bank has been reduced to less than 3%, marking the near completion of its return to full private ownership. This milestone, anticipated since last year, signifies a significant shift for the bank, which has been undergoing a recovery since the 2008 financial crisis.

Chair Rick Haythornthwaite highlighted the bank’s strong performance in 2024, with a share price increase of over 80% and one of the top positions in the FTSE for total shareholder returns. NatWest also announced £4 billion in capital returns to shareholders for 2024, including an interim dividend of £500 million and a proposed final dividend of £1.2 billion.

The bank’s focus on becoming an integrated, technology-enabled bank has been a key driver in its recent success. With the introduction of a new remuneration policy that aligns with the bank’s performance and strategy, NatWest aims to embed a performance culture and operate with less bureaucracy.

CEO Paul Thwaite reported that NatWest exceeded its income and returns guidance in 2024, with an underlying income of £14.6 billion and a Return on Tangible Equity of 17.5%. The bank’s strategic priorities include disciplined growth, bank-wide simplification, and active balance sheet and risk management. These efforts have contributed to strong capital generation, enabling support for customers, business investment, and shareholder distributions.

The bank’s digital transformation is also advancing, with about 80% of retail banking customers using digital services exclusively. NatWest’s use of AI, including a pilot with Generative AI, has led to a 150% increase in customer satisfaction.

The meeting also saw changes in the bank’s board, with the arrival of new members Geeta Gopalan and Gill Whitehead, and the departure of several long-serving members, including Mark Seligman, Ian Cormack, Jan Cargill, and Frank Dangeard.

As NatWest approaches full private ownership, Thwaite emphasized the bank’s readiness to support economic growth in the UK and the importance of financial services in driving investment and job creation.

This news is based on a press release statement from NatWest Group plc.

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