Wednesday, 21 February, 2024

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Share sale reduces taxpayer stake in NatWest once again

Share sale reduces taxpayer stake in NatWest once again

The lender was bailed out at the height of the 2008 financial crisis with £45 billion of taxpayer cash

The taxpayer’s stake in NatWest has been reduced again after the Government offloaded another tranche of shares in the banking giant.

The Treasury’s stake in NatWest has been cut to 42.95% from 43.97% after the move which is part of its ongoing programme to sell down its stake.

It has sought to place more of the bank in private hands after the lender was bailed out at the height of the 2008 financial crisis with £45 billion of taxpayer cash.

In March last year, NatWest confirmed it was majority owned by private investors in a milestone for the recovery of the business.

Shares in the bank have risen by 22% over the past six months, while it also revealed last week that profits surged by more than a third to reach £5.1 billion last year.

It handed its boss an annual bonus for the first time since the bank’s bailout by the Government in 2008.

Chief executive Dame Alison Rose took home a total of £5.25 million over the year including salary and bonuses.

It also ramped up the bonus pool for its bankers by nearly £70 million in 2022, to total £367.5 million.

NatWest likewise offered cheer for investors as its unveiled plans for a £800 million share buyback and a big hike in dividends, with a 10p final payout, up from 7.5p a year ago.

But shares fell sharply on the day in disappointment over its 2023 outlook.

Published: by Radio NewsHub

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