This marks a significant reduction in the Treasury’s holding, which stood at approximately 38% in December 2023. The government has now recouped over £20bn from selling shares acquired during the 2008 financial crisis when it bailed out the then Royal Bank of Scotland.

The recent share buyback was conducted as a “directed buyback contract”, allowing NatWest to repurchase shares directly from the government. This approach follows a similar buyback earlier this year and aligns with the Treasury’s intention to fully divest its stake in the bank by 2025 or 2026.

Paul Thwaite, CEO of NatWest Group commented: “As a result of NatWest Group’s continued strong performance, we are pleased to have today completed our second buy back of government shares of 2024, further reducing HM Treasury’s shareholding.

“This transaction represents another important milestone on the path to full privatisation. We believe it is a positive use of capital for the bank and for our shareholders and we are pleased with the sustained momentum in reducing HM Treasury’s stake in NatWest Group throughout this year.”