Proactive Investors - Opponents of public ownership rejoice as NatWest Group PLC (LON:NWG) is no longer classed as a public company, following the government's steady selling down of its stake.
With the stake having fallen below 25% in June, and at the start of August standing at just under 19%, the Office for National Statistics has decided the bank will no longer be included in its calculations as one of the state-owned companies.
It is for statistical purposes only, though, and will have no impact on its headline public sector finances, as this excludes banks.
However, it will reduce the total measure of public sector net debt by around £372 billion, based on today’s publication for July 2024.
Natwest became part of the public sector in 2008, when it was known as RBS and was bailed out during following the credit crunch and during the depth of the global financial crisis.
As part of the bail-out, the company agreed to certain restrictions, including around shareholder distributions and directors’ remuneration.
HM Treasury has been selling down the stake since 2015 and removed the restriction on the lender paying dividends and conducting buybacks in 2009.