NatWest Shares (NWG) Fall Back From Highs as UK Govt Stake Moves Below 11%

The UK government has further reduced its stake in NatWest Group PLC, an Edinburgh, Scotland-based bank. As per the latest filing with the stock exchange on Friday, the government's share now stands at 10.99%, a slight decrease from 11.34%. This sale is a continuation of a trading plan that has been in process for three years.

Natwest shares (LON: NWG) hit a new 52 week high to start the day, with the new mark of 404.5p being followed by a dip in the afternoon. The NWG price has since fallen to 392.50p which reflects a 2% drop on the day.

The sale involved offloading approximately 27.8 million NatWest shares. The transaction amounted to around GBP 109 million, indicating the government's ongoing efforts to return the bank to full private ownership. This move is significant given that the government originally took an 84% stake in NatWest, which was then known as the Royal Bank of Scotland, following a sizable bailout during the global financial crisis of 2008 and 2009. Since then, it has been steadily decreasing its hold over the banking institution.

As of now, with the reduction to a 10.99% stake, the government continues to step back from the role of a major shareholder, a position it has held for over a decade.

Since the start of this year, Natwest's share price has shown some impressive growth, with gains of 78.25% significantly outperforming the FTSE 100. The surge in NatWest’s stock over the 12-month period underscores the bank's recovery and appeal in the financial sector.

The reduction of the government's stake in NatWest marks a continuation of a strategic plan to restore the bank to private ownership. This latest sale shows the government's commitment to this objective, though it still remains a significant shareholder.