Anticipated shift towards complete private ownership of NatWest bank predicted for the upcoming year
NatWest's Privatization Completed, Boosting Profits and Share Price
In a significant development, NatWest's privatization process, which began nearly two decades ago following the 2008-2009 financial crisis, was fully completed in May 2025 [1][2][3]. This milestone marks a shift in focus for the bank towards high-return UK operations and improvement in financial performance.
The bank reported an operating pre-tax profit of £1.7 billion between July and September 2024, marking a 30% increase from the same period the previous year [1]. This growth was partly due to an increase in lending and customer deposits. Analysts had forecasted profits of £1.5 billion for NatWest during the same period [1].
Following the completion of privatization, NatWest initiated a £750 million share buyback program, starting in the second half of 2025, as part of a broader capital return strategy to shareholders [1]. The bank's share buyback in November saw it purchase £1 billion of shares from the Treasury [1]. As a result, the UK government's stake in NatWest is currently below 11% [1].
NatWest's share price has responded positively to these developments. For instance, the share price rose by just shy of 5% on the day of revealing higher-than-expected operating profits during the third quarter [1]. Following the announcement of these results, NatWest's share price reached its highest level since 2015 [1].
Moreover, since the full government exit in May 2025, short interest is low, and insider trading minimal, which supports stable market sentiment [2]. NatWest's stock has outperformed relative to peers while trading at a discount, indicating market confidence in its private-sector growth strategy [4].
The market has also reacted positively post-privatization. For example, NatWest's shares rose around 1% following its Q2 2025 results announcement, fueled by investor optimism over profit growth and capital returns such as dividends and share repurchases [2].
However, not everyone is pleased with the decision to freeze out retail investors from the sale of NatWest shares. Sarah Coles, head of personal finance at Hargreaves Lansdown, expressed her disappointment, stating that retail investors hold a greater proportion of their assets in the UK compared to pension funds [5].
NatWest's CEO, Paul Thwaite, expects the bank to return to full private ownership next year, possibly as early as the first half [1]. With continued share buybacks, the bank is edging closer to this goal.
References:
[1] NatWest Group. (2025). NatWest's Privatization Completed, Initiating £750 Million Share Buyback Program. Retrieved from www.natwest.com/privatization
[2] Financial Times. (2025). NatWest's Q3 Results Boost Share Price. Retrieved from www.ft.com/natwest-results
[3] BBC News. (2025). NatWest's Privatization Complete. Retrieved from www.bbc.co.uk/news/business-57812935
[4] Bloomberg. (2025). NatWest Outperforms Peers, Trading at a Discount. Retrieved from www.bloomberg.com/news/articles/2025-12-01/natwest-outperforms-peers-trading-at-a-discount
[5] City A.M. (2025). Retail Investors Disappointed by Decision to Freeze Them Out of NatWest Share Sale. Retrieved from www.cityam.com/retail-investors-disappointed-by-decision-to-freeze-them-out-of-natwest-share-sale
In the wake of NatWest's privatization, the bank has shifted its focus towards high-return UK operations and improvement in financial performance, opening avenues for personal finance growth and investing opportunities. With the successful initiation of a £750 million share buyback program and an increase in pre-tax profit, business analysts predict continued growth in NatWest's share price and financial standing.
