The announcement, made following the release of the bank’s financial report on February 14th, highlights several key indicators of NatWest’s success
NatWest Group is on track to return to full private ownership in 2025, according to its CEO, Paul Thwaite. This development comes on the heels of a significant financial turnaround, with the bank reporting an attributable profit of £4.5 billion. The announcement, made following the release of the bank’s financial report on February 14th, highlights several key indicators of NatWest’s success.
The financial highlights for 2024 include a stronger share value, higher shareholder payouts, and an increased CET1 ratio of 13.6%. The CET1 ratio is a crucial metric used to assess a bank’s financial safety and stability. Additionally, Tangible Net Asset Value (TNAV) has grown, indicating a strengthening of the bank’s financial position. This growth has contributed to the profit surge while increasing the tangible assets available per share for investors.
The overall investor profile also shows increased earnings per share (EPS) and return on tangible equity (RoTE). These factors are likely to boost investor confidence and support long-term growth, making NatWest’s shares highly attractive to investors. The data suggest that NatWest is in a position of greater financial strength, with profits expected to continue growing beyond 2025.
Thwaite commented on the acceleration towards privatisation, stating, “The acceleration towards privatisation has attracted investment from those that share our growth ambition and will mark a new, forward-looking chapter for the bank.” Despite its recent success, NatWest Group faced significant challenges during the 2008 financial crisis, coming close to insolvency.
At that time, the UK government injected £45.5 billion into the bank, which was then known as the Royal Bank of Scotland (RBS). By the end of December 2009, Treasury had accumulated total economic ownership of 84.9%. This intervention required the bank to reorganise its operations, cut costs, and prioritise UK-focused retail banking. These measures eventually stabilised its revenues and reduced its overall risk exposure.
In 2015, after the bank began to stabilise, Treasury initiated the process of selling shares back to the private sector. Concurrently, the bank started closing large parts of its Global Banking and Markets division, reducing its exposure to volatile banking activities. Over the years, NatWest has significantly reduced its operating costs by closing branches and cutting staff to align with the growing trend of online banking.
The Sun reported that NatWest closed 48 of its sites in recent years, with forecasts suggesting that 53 more will close this year. The bank is reinvesting its resources into digital banking to replace these traditional branch operations. With the threat of insolvency now a distant memory, NatWest has made bold steps to capitalise on its portfolio of AI products and digital services.
One recent example is its micro-investment in Serene, an early-stage AI platform that aims to tackle financial vulnerability in users. Serene analyses bank transactions using real-time customer-driven insights to proactively identify indicators of financial distress, such as unexpected overdrafts or declining balances. This is just one of many ventures the bank has pursued since launching its AI initiatives.
In a closing statement, Thwaite said that 2025 will be a year of balance between optimism and caution. He is preparing for modest economic growth in the year ahead and recognises the role that NatWest and the wider banking sector can play in supporting the UK’s economic recovery. “The new government has a clear intent to deliver growth across all nations and regions of the UK and, importantly, has recognised the role that our bank and the wider sector can play,” he stated.
As NatWest Group looks forward to returning to full private ownership in 2025, it stands as a testament to the bank’s resilience and strategic focus on digital transformation and financial stability.
