This works out to 392.4 million shares bought back from the government at 316.2p per share, and, combined with HMT’s ongoing trading plan, reduces government ownership in the bank to approximately 22.5% – down from 26.95% as at 13 May.

Public ownership of NatWest Group was 84% in 2008, when the RBS was bailed out. A planned sale to retail investors next month of the remaining taxpayer holding has been put on hold following the announcement of the UK general election.

Paul Thwaite, NatWest Group chief executive, said: “This transaction represents another important milestone for NatWest Group, building on recent momentum in the reduction of HM Treasury’s stake in the bank.

“We believe it is a positive use of capital for the bank and for our shareholders and represents further progress against the ambition to return NatWest Group to full private ownership. Our focus remains on delivering for our customers which will, in turn, deliver for our shareholders and the UK economy.”