Achi news desk-
The prospect of the lender returning fully to private hands is tantalizingly close after Chancellor of the Exchequer Jeremy Hunt indicated that a retail offer of the Government’s interest could take place as early as this summer. It would bring an end to what NatWest chairman Rick Haythornthwaite described this week as a “bad story” about the government’s involvement with the organisation, which began when it acquired the bank, which was known on the when as Royal Bank of Scotland, bailed out £45.5 billion at the height of the financial crisis in 2008 and 2009.
READ MORE: Is it time to back a controversial investment bank?
“To be honest with you, I remember Tell Sid vaguely, but I must admit I was quite young when it happened,” Mr Thwaite told reporters today.
“More seriously, and more importantly, I think the retail share offer, should it happen, is an important opportunity, because it further dilutes the shares. [government] a share. I have been very encouraged by the 8% share drop in the first quarter of the year and we are now under 29%. We are taking the necessary preparatory steps to ensure that, should it happen, we will be ready for that.”
The comments from Mr Thwaite, who succeeded Dame Alison Rose after Nigel Farage’s “de-banking” scandal last year, came on what proved to be a good day for NatWest. Profits for the third quarter fell but beat expectations, with the bank also exceeding the City’s forecasts on margins and impairments. The update sent shares soaring by 6%.
READ MORE: The Borders Distillery Company secures a £35m financial boost
Mr Thwaite said the bank believed the “pressure is easing on retail consumers” following a prolonged cost of living crisis, citing expectations of interest rate cuts and inflation. But he cautioned that by noting that “there are still some challenges”.
It may not be the sprawling powerhouse it once was, but the outlook for NatWest certainly looks a lot brighter than it did 15 years ago.
