The UK Government's holding in NatWest has decreased to 4.82%, following a recent sale of shares, marking a significant milestone in the bank's transition back to full private ownership after over 16 years since its bailout during the 2008 financial crisis.

On Thursday, NatWest confirmed that the Treasury's stake has fallen below the 5% threshold, a notable change from prior holdings.

Initially, during the financial crisis, the Government acquired an 84% stake in the institution, which was then known as the Royal Bank of Scotland.

As of the end of 2023, the Government retained a 40% share in NatWest, but it has been actively reducing this stake as part of efforts to return the bank to the private sector.

This latest reduction signifies that the Government is no longer the largest shareholder, having fallen below 6% in February 2024, making way for investment group BlackRock, which now holds a larger stake.

A spokesperson for NatWest emphasized the shared ambition of both the bank and the Government to facilitate full privatization, asserting that it aligns with the interests of all shareholders.

Chief executive Paul Thwaite expressed optimism regarding the future growth opportunities for the bank, positioning NatWest as a vital partner for its customers and the UK economy.

In financial terms, NatWest reported a pre-tax operating profit of £6.2 billion for the year 2024, reflecting robust business performance.

The bank also issued approximately £467 million in bonuses to eligible employees, a figure that represents a 25% increase compared to the previous year, attributed to the stronger financial outcomes achieved.

This financial recovery comes as the bank transitions away from its crisis-era legacy towards a more stable and privately-owned future.