UK government lowers its stake in NatWest bank

Bank to buy back £1.1bn of its shares from the state, edging it further towards private ownership

NatWest, formerly Royal Bank of Scotland, will be 59.8% government-owned after the deal, down from 62% previously.

NatWest — which recently confirmed plans to pull Ulster Bank out of the Republic — will buy back £1.1bn (€1.3bn) of its shares from the British government, edging the state-backed lender further towards private hands as the UK government pushes to fully sell off banks bailed out in the financial crisis.

The sale crystallises a further loss of around £1.8bn for the UK government on its £45bn rescue of NatWest.