In a stunning reversal of fortunes, NatWest, the British banking giant that was bailed out and nationalized during the 2008 financial crisis, is now on the cusp of returning to full private ownership. Speaking at a recent banking summit, NatWest CEO Paul Thwaite revealed that the bank is shedding government ownership at a rapid pace and could be completely privately held as early as the first half of 2025.
This marks a remarkable turnaround for an institution that, just over a decade ago, was on the brink of collapse. In 2008, amid the global financial meltdown, the British government was forced to step in and rescue NatWest (then known as Royal Bank of Scotland or RBS) with a massive £46 billion bailout package. This nationalization left taxpayers owning a staggering 84% stake in the troubled bank.
A Long Road to Recovery
In the years since the crisis, NatWest has been on a gradual path to recovery, shedding its toxic assets, streamlining operations, and rebuilding its balance sheet. The government, too, has been steadily reducing its stake, drip-feeding shares into the open market to recoup taxpayer funds.
But the pace of this privatization has accelerated dramatically in recent months. According to Thwaite, the government’s stake in NatWest has plummeted from 38% in December 2023 to just under 11% today. This rapid sell-off, combined with NatWest’s own share buyback program, has put the bank on track to be fully privately owned well ahead of initial projections.
A Symbolic Moment for British Banking
For Thwaite, the prospect of NatWest returning to private hands represents a hugely symbolic moment, not just for the bank’s 60,000 employees, but for the entire British banking sector. It will, he says, allow the industry to finally close the chapter on the 2008 crisis and its tumultuous aftermath.
“It means we can talk about the future of the bank and the potential of the bank, rather than having to talk about its past,” Thwaite explained. “I think we’re on a very fast trajectory to private ownership, and I’m very proud of that.”
– NatWest CEO Paul Thwaite
Indeed, NatWest’s imminent return to the private sector is being seen as a watershed moment, marking the end of an era of unprecedented government intervention in the British banking industry. It’s a powerful signal that the sector has finally put the ghosts of 2008 to rest and is ready to face the future with renewed confidence.
Challenges and Opportunities Ahead
Of course, NatWest’s journey back to private ownership hasn’t been without its challenges. The bank has had to navigate a complex and ever-changing regulatory landscape, while also grappling with the economic fallout from Brexit and, more recently, the COVID-19 pandemic.
But Thwaite is confident that NatWest is well-positioned to thrive in the post-pandemic, post-Brexit world. The bank has made significant investments in digital transformation, he notes, and is poised to benefit from the accelerating shift toward online and mobile banking.
“We’ve used this period to really accelerate our digital transformation,” Thwaite said. “We’re seeing a huge shift in customer behavior, with more and more people banking online and through our mobile app. That’s an area where we’re really well-positioned to compete and grow.”
– NatWest CEO Paul Thwaite
A Bright Future for NatWest
Looking ahead, Thwaite sees a bright future for NatWest as a fully private, independent bank. Free from the constraints of government ownership, he believes the bank will be better able to invest in growth, innovate for its customers, and deliver strong returns for its shareholders.
“This is an incredibly exciting time for NatWest,” Thwaite declared. “We’ve come through a tremendously challenging period, but we’ve emerged stronger, leaner, and more focused than ever. With the return to private ownership now firmly in sight, we’re ready to write the next chapter in our nearly 300-year history.”
For the British banking sector as a whole, NatWest’s resurgence is a powerful testament to the industry’s resilience and adaptability. It’s a story of crisis and recovery, of challenge and transformation—and ultimately, of the enduring strength of one of the world’s oldest and most important financial centers.
As NatWest prepares to embark on its new life as a fully private bank, one thing is clear: the future of British banking looks brighter than it has in a very long time.