The United Kingdom has completed the sale of its last shares in NatWest Group, thereby concluding 17 years of state ownership originating from a £45 billion taxpayer bailout that was necessary to avert the bank's collapse during the 2008 financial crisis.

The privatization of NatWest, previously known as the Royal Bank of Scotland (RBS), represents a significant milestone in the bank's nearly 300-year history, effectively marking the end of a tumultuous period associated with one of the most severe financial downturns in recent decades.

Despite the successful return to private ownership, the government reported a loss of approximately £10 billion to taxpayers, having recouped around £35 billion of the initial costs related to the bailout.

This recovery figure stands in contrast to the £900 million in profits generated from the sale of shares in Lloyds Banking Group, which underwent privatization in 2017 after receiving £20.3 billion in state assistance during the crisis.

The UK Treasury commented that while the entirety of the RBS bailout costs were not recovered, the implications of not intervening would have included a more severe economic fallout and greater social consequences, potentially undermining public confidence in the UK's financial system and jeopardizing people's savings and livelihoods.

Chancellor Rachel Reeves remarked on the historic significance of the moment, stating, "Nearly two decades ago, the then-government stepped in to protect millions of savers and businesses from the consequences of the collapse of RBS.

That was the right decision then to secure the economy, and NatWest’s return to private ownership turns the page on a significant chapter in this country’s history."

The exit from NatWest marks the conclusion of government intervention in all banks that required bailouts during the financial crisis, as confirmed by the Treasury.

RBS emerged as a symbol of the banking sector's collapse, attributed to aggressive expansion strategies under former CEO Fred Goodwin, who faced substantial public criticism and was later stripped of his knighthood in 2012. His pension is now approximately £600,000 annually.

In 2007, RBS led a consortium to acquire the Dutch bank ABN Amro for £49 billion, a deal that was one of the largest in financial services history, temporarily making RBS the world's largest bank with assets exceeding £2.2 trillion.

However, this period of aggressive growth was followed by extensive financial mismanagement, including lavish executive expenditures and the construction of a £350 million campus in Edinburgh, culminating in the necessity of a state bailout in October 2008. This intervention resulted in the government acquiring an 84% stake in RBS, leading to a prolonged period of austerity that critics argue has adversely affected public services nationwide.

Following the bailout, RBS was compelled to cancel bonuses and undergo a lengthy restructuring process, which included workforce reductions and scaling back international operations to focus on UK markets.

The bank returned to profitability in 2018 and rebranded itself as NatWest in 2020, shedding the RBS name.

The government gradually recouped its investment through dividends and a combination of share sales to institutional investors and small-scale market offerings.

NatWest accelerated this process through substantial share buybacks, culminating in its complete privatization.

Paul Thwaite, Chief Executive of NatWest, stated, "This is a significant moment for NatWest Group, for all those who work here and for the UK more widely.

As we turn the page on the financial crisis, we can look to the future with confidence, without forgetting the lessons of the past."