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NatWest announces £1.5bn return to investors

NatWest reveals plans for substantial shareholder payouts shortly after its privatisation.

July 25, 2025 at 08:38 AM

NatWest investors given £1.5bn weeks after full privatisation

NatWest reveals substantial profit growth and a generous shareholder return soon after full privatisation.

NatWest announces £1.5bn payout to investors shortly after privatisation

NatWest is set to return £1.5bn to shareholders just weeks after the UK government sold its final stake in the bank. The announcement includes an interim dividend of 9.5p a share, totaling £768m, alongside a £750m share buyback planned for the year’s second half. This comes after NatWest reported a 4.4% increase in second-quarter profits, reaching nearly £1.8bn, partly driven by its acquisition of Sainsbury's banking operation. The bank forecasted revenues exceeding £16bn for 2025, outperforming previous estimates. This marks a significant point for NatWest, as it completes 17 years under government ownership following a £45bn bailout during the 2008 financial crisis. While the government has begun to reap benefits from the bank's recovery, taxpayers faced a £10bn loss on the eventual share sales, which lagged behind the early bailout buy-in price.

Key Takeaways

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NatWest plans to return £1.5bn to shareholders soon after full privatisation

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The bank reports a 4.4% rise in second-quarter profits to approximately £1.8bn

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An interim dividend of 9.5p per share and a £750m buyback are part of the payout

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Growth is partly due to the acquisition of Sainsbury's banking business

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Forecasts for 2025 now expect revenues over £16bn, improving previous guidance

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Taxpayers face a £10bn loss from the bank's bailout sale despite recovery signs

"NatWest Group’s strong performance in the first half of the year reflects our consistent support for our customers and, in turn, delivery for our shareholders."

Paul Thwaite highlights the alignment of customer support and shareholder value in NatWest's performance.

"NatWest has posted another strong set of results, beating forecasts again as the bank’s turnaround really takes hold."

Zoe Gillespie notes how NatWest's strategies are successfully translating into financial success.

NatWest's recent developments signal a strong turnaround from its troubled past. By offering substantial returns to investors shortly after becoming fully privatised, the bank not only showcases its improved financial health but also seeks to reassess its corporate identity and strategy in the current market. As it focuses on income growth through strategic acquisitions and operational simplicity, stakeholders remain optimistic about the future. However, lingering concerns about the losses taxpayers incurred during the bailout still resonate in public discussions about bank privatisation and accountability.

Highlights

NatWest's turnaround is evident in its robust profit growth and substantial shareholder returns.
The return to private ownership sets a new precedent for NatWest's commitment to its investors.
Strong financial results highlight a strategic transformation for NatWest post-privatisation.
Taxpayer losses remain a shadow over the bank’s recent successes.

Taxpayers face potential backlash over bailout losses

Despite NatWest's successful recovery and investor returns, the £10bn loss to taxpayers from previous bailouts raises concerns about accountability and trust. Many believe that the financial industry must be held to higher standards following public investment.

This shift in NatWest's performance illustrates the complex relationship between public ownership and private success.

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natwest banking profit dividend privatisation finance business

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