CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

NatWest buys back £1.1bn of shares from UK government

By Lawrence Gash

12:01, 22 March 2021

NatWest

Shares in NatWest dipped on Friday afternoon after it announced its intention to buy back £1.1bn ($1.5bn, €1.2bn) of its shares from the UK government.

The government rescued the British bank, formerly known as Royal Bank of Scotland, in the wake of the Global Financial Crisis in 2008 by buying 84 per cent of its shares for around £45bn.

NatWest is currently limited to buying about 5 per cent of its stock a year from the government. The bank’s latest decision will bring the state’s stake down from 62 per cent to 59.8 per cent.

CEO Alison Rose stated: “We believe this is a good use of capital for the bank and our shareholders.”

The sale will represent a £1.8bn loss for the government on its investment. This will not come as a great shock to those in Westminster.

US100

18,266.60 Price
-0.020% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 1.8

BTC/USD

70,817.35 Price
+3.180% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

Gold

2,207.56 Price
+0.520% 1D Chg, %
Long position overnight fee -0.0188%
Short position overnight fee 0.0106%
Overnight fee time 21:00 (UTC)
Spread 0.50

ETH/USD

3,575.22 Price
+2.220% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

NatWest’s share price has failed to recapture its pre-2008 momentum, still standing 96 per cent off the highs reached shortly before the crash. The Office for Budget Responsibility recently estimated that the state will make a loss of around £39bn on the rescue once full costs are factored in.

The bank reported a full-year loss last month of £351m, rather than the pre-tax profit of £1.3bn predicted by analysts. Despite this and ongoing questions surrounding its potential failure to prevent money laundering, the bank’s share price has risen by more than 50 per cent over the past year.

By mid-afternoon on Friday, however, NatWest traded down 0.5 per cent at 189.50 pence.

-
Sell
Spread
Chg%
Trade
go to page
+0.55%
go to page
+0.04%
go to page
+2.78%
go to page
+1.14%
go to page
+2.02%
go to page
+0.81%
go to page
+1.49%
go to page
+0.02%
go to page
-0.22%
go to page
-1.52%

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 580.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading