Shares in NatWest soared to a decade peak on Thursday, spurred by the Government’s ongoing efforts to diminish its ownership stake in the bank.
The blue-chip giant’s stocks climbed close to one per cent in afternoon dealings, attaining highs of 498.8p on the stock market, as reported by City AM.
A stunning uptick has been recorded for NatWest shares, with nearly 24 per cent escalation since the outset of 2025 and an impressive surge of over 50 per cent across the past twelve months.
This bullish performance coincides with the Government trimming its hold to a mere 0.9 per cent in the group, heralding an imminent full return to private ownership for the lender.
Originating from the dire days of the 2008 Financial Crisis, the Government poured £45.5bn into what was then Royal Bank of Scotland, to save it from collapse.
In the crisis aftermath, shares plummeted drastically, nosediving 96 per cent in just two years. The firm’s historic pre-crash share price zenith of 5236.28p still utterly overshadows recent highs.
A spokesperson for NatWest Group noted: “Returning the bank to full private ownership is an ambition we share with the government, and one that we believe is in the interests of all our shareholders.”
They added: “We welcome the progress that the Treasury continues to make, having reduced its shareholding in the bank from nearly 40 per cent in December 2023 to below one per cent today.”
Reeves’ stamp duty changes boosted Natwest’s profit
The bank experienced a profitable quarter, partly thanks to the boost from Chancellor Rachel Reeves’ revisions to stamp duty, resulting in heightened transactional activity as people raced to avoid the new stamp duty imposition, thus aiding NatWest’s earnings to outperform projections.
The company heralded a robust £1.8bn in pre-tax profit, eclipsing the analyst average estimate of £1.6bn.
This success was propelled by a hefty £3.4bn rise in net loans to customers as mortgage borrowing soared.
Following Reeves’ alteration of zero rate thresholds from 31 March for main homes, the limit plummeted from £250,000 to £125,000, while thresholds for first-time buyers fell from £425,000 to £300,000.
NatWest witnessed its net interest margin – a vital gauge of profitability from lending – widen by eight basis points since the close of 2024, reaching 2.27%.
Although US President Donald Trump’s tariff fusillade on ‘Liberation Day’ narrowly skirted the initial quarter, NatWest joined ranks with FTSE 100 compatriots HSBC, Barclays, and Lloyds in earmarking provisions.
Expected credit loss swelled by £100m to £3.5bn.
The firm stated: “We retain post model adjustments of £300m related to economic uncertainty, or 8.7 per cent of total impairment provisions.”
The share price plunged to a nadir of 411.20p amid the turmoil of tariffs.
