NatWest officially announces a 'significant' departure from government bailout, targeting complete private ownership by July.
NatWest's chair, Rick Haythornthwaite, hailed a significant milestone yesterday as the banking behemoth readies to fully embrace private ownership - the first time since the government's bailout during the 2008 financial crisis.
Haythornthwaite expressed profound gratitude to UK taxpayers for mobilizing to save the bank from collapse, stating it had significantly altered the banking giant over the past 17 years. The UK government, initially owning an extraordinary 84% stake, has been progressively selling its holding since 2022.
The government's exit below the 3% threshold is planned by July, symbolizing a fresh chapter for the bank. At the annual shareholder meeting in Edinburgh, Haythornthwaite proclaimed, "We're on the cusp of a return to full private ownership. This marks a forward-thinking, new chapter in our story."
The process accelerated over the past three years, with the government's stake dropping to under 40% in 2023 and slipping further to less than 3% in early 2025.
Chief Executive Paul Thwaite expressed optimism about turning the page on the global financial crisis, stating, "I am genuinely grateful to the UK taxpayer. With a positive outlook for the future, we can confidently embrace the opportunities ahead, never losing sight of the financial crisis' lessons."
Investors endorsed measures presented during the meeting, including a £7.8 million compensation package for Thwaite, an increment from £4.9 million the previous year.
Financial institutions have seized the opportunity provided by regulatory changes to lift the cap on bankers' bonuses. Many banks have opted to slash executive base salaries in exchange for larger performance-based rewards.
Haythornthwaite cautioned against excessive risk-taking, commenting, "We've been measured with our adjustments; other banks have gone further. Let's not reopen floodgates or forget the past's lessons."
NatWest's shares surged 3.7%, or 16.8p, to 476.5p.
- Rick Haythornthwaite, NatWest's chair, highlighted the bank's transition back to full private ownership, a milestone not seen since the government's bailout during the 2008 financial crisis.
- Haythornthwaite expressed profound gratitude to UK taxpayers for their role in saving the bank from collapse, stating it had significantly altered the banking giant over the past 17 years.
- At the annual shareholder meeting in Edinburgh, Haythornthwaite emphasized the importance of learned lessons from the financial crisis, stressing the need for caution in investments, specifically in stocks and banking.
- CEO Paul Thwaite, in light of the bank's approaching full private ownership, gratefully acknowledged the UK taxpayer for their support and expressed optimism about the future opportunities in business and investing.
- In response to regulatory changes, financial institutions have been re-evaluating their executive compensation structures, with NatWest opting to increase the compensation package for CEO Paul Thwaite, now worth £7.8 million, while reducing base salaries in favor of larger performance-based rewards.
