Natwest Shares (NWG) Close Week on High, as Government Exit Draws Near

Natwest share price (LON: NWG) has ended the week with a new multi year high, with the mark of 506.60p coming as the bank closed the day up 1.3%. Now up 25.49% YTD, Natwest is trading at levels not seen since the financial crisis more than a decade ago.

This new high comes even as the UK Government is continuing to sell down shares in the bank. It is now apparent that the government is nearing closer to relinquishing its remaining stake in Natwest, with a projection to complete the sale by June. This comes as part of a long-term strategy that began in the aftermath of the 2008 financial crisis.

In a move that initially saw the government acquire a significant 80% stake in Natwest, then operating as the Royal Bank of Scotland, following a substantial £46 billion bailout during the crisis, its ownership has been gradually reduced over the years. At the beginning of 2024, the government's holding was down to 38%, but the pace of selling has only increased.

In less than two years, the current position is now down to less than 1% of the total NWG shares. This rapid divestment has been happening at an average reduction rate exceeding 2% monthly. The continued progress aligns with plans to revert the lender to full private ownership, a goal shared between Natwest and governmental bodies.

Over the past 5 years, Natwest's share price has grown 348.81%, significantly outperforming the FTSE 100 (+49.74%) by more than 5X.

The completion of this divestiture will mark an end to more than 15 years of governmental involvement in the lender, as the government's trajectory suggests a complete exit from Natwest ownership by June.