British taxpayer’s £10.2bn loss on bailout of RBS

British taxpayers are set to swallow a lack of simply over £10bn on the 2008 rescue of Royal Financial institution of Scotland (RBS) as the federal government prepares to substantiate that it has offloaded its last-remaining shares within the lender as quickly as subsequent week.

Sky Information can reveal the last word value to the UK of saving RBS – now NatWest Group – from insolvency is anticipated to return in at about £10.2bn as soon as the proceeds of share gross sales, dividends and charges related to the stake are aggregated.

The ultimate invoice will draw a line below one of the infamous financial institution bailouts ever orchestrated, and comes practically 17 years after the then chancellor, Lord Darling, carried out what RBS’s boss on the time, Fred Goodwin, labelled “a drive-by capturing”.

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The chancellor, Rachel Reeves, is prone to make an announcement in regards to the milestone, though insiders say the Treasury and the financial institution are eager to easily mark the event by thanking British taxpayers for his or her protracted assist.

A inventory trade submitting disclosing that taxpayers’ stake had fallen under 1% was made final week, down from over 80% within the years after the £45.5bn bailout.

The stake now stands at 0.26%, that means the ultimate shares may very well be offloaded as early as the center of subsequent week, relying upon demand.

Whole proceeds from a authorities buying and selling plan launched in 2021 to drip-feed NatWest inventory into the market have up to now reached £12.8bn.

Based mostly on the financial institution’s present share worth, the remaining shares ought to fetch within the area of £400m, taking the determine to £13.2bn.

As well as, institutional share gross sales and direct buybacks by NatWest of government-held inventory have yielded an extra £11.5bn.

Dividend funds to the Treasury throughout its possession have totalled £4.9bn, whereas charges and different funds have generated one other £5.6bn.

In combination, meaning complete proceeds from NatWest since 2008 are anticipated to hit £35.3bn.

Below Rick Haythornthwaite and Paul Thwaite, now the financial institution’s chairman and chief government respectively, NatWest is now targeted on driving development throughout its enterprise.

It not too long ago tabled an £11bn bid to purchase Santander UK, in keeping with the Monetary Occasions, though no talks are ongoing.

Mr Thwaite changed Dame Alison Rose, who left amid the disaster sparked by the debanking scandal involving Nigel Farage, the Reform UK chief.

Sky Information not too long ago revealed that the financial institution and Mr Farage had reached an undisclosed settlement.

Throughout the first 5 years of NatWest’s interval in majority state possession, the financial institution was run by Sir Stephen Hester, now the chairman of easyJet.

Sir Stephen stepped down amid tensions with the then chancellor, George Osborne, about how RBS – because it then was – needs to be run.

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Lloyds Banking Group was additionally in partial state possession for years, though taxpayers reaped a internet acquire of about £900m from that interval.

Different lenders nationalised throughout the disaster included Bradford & Bingley, the majority of which was offered to Santander UK, and Northern Rock, a part of which was offered to Virgin Cash – which in flip has been acquired by Nationwide.

NatWest declined to touch upon Friday.

A Treasury spokesperson mentioned: “We now personal lower than 1% of shares in NatWest which is a major step in the direction of returning the financial institution to personal possession and delivering worth for cash for taxpayers.

“We’re on monitor to exit the shareholding quickly, topic to gross sales attaining worth for cash and market circumstances.”