AT 52, it was not surprising to hear Paul Thwaite say he only “vaguely” remembers Tell Sid, the campaign that enticed the public to buy shares in British Gas in 1986.
But the new chief executive of NatWest Group was crystal clear when questioned today on the expected retail offer of shares in the bank.
The prospect of the lender making a full return to private hands is tantalisingly close after Chancellor of the Exchequer Jeremy Hunt signalled a retail offer of the Government’s stake could take place as early as this summer. It would bring an end to what chairman NatWest chairman Rick Haythornthwaite described this week as a “sorry tale” of government involvement in the institution, which began when the bank, then known as Royal Bank of Scotland, was bailed out to the tune of £45.5 billion at the height of the financial crisis in 2008 and 2009.
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“Being candid with you, I do vaguely remember Tell Sid, but I should admit I was pretty young when that 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 reduces the [government] shareholding. I have been very encouraged by the reduction in shareholding of 8% in the first quarter of the year and we are now below 29%. We are taking the necessary preparatory steps to ensure, should it happen, we will be ready for that.”
The comments from Mr Thwaite, who succeeded Dame Alison Rose after last year’s Nigel Farage “de-banking” scandal, came on what proved to be a good day for NatWest. Profits for the third quarter fell but beat expectations, with the bank also outstripping City forecasts on margins and impairments. The update sent shares soaring by 6%.
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Mr Thwaite said the bank thinks the “pressure is easing for retail consumers” following a protracted cost of living crisis, citing expectations of reductions in interest rates and inflation. But he caveated that by noting that “there are still some challenges”.
It may no longer be the sprawling powerful institution that it was once was, but the outlook for NatWest certainly looks a lot brighter than it did 15 or so years ago.
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