NatWest Group PLC (LSE:NWG) has bought back around 469mln shares from the Treasury, further reducing the UK government’s stake in the bank.
In a statement, the high street lender said it had agreed the off-market purchase of 469mln shares at a price of 268.4p each in a deal worth £1.26bn.
The shares represent around 4.95% and means HM Treasury now holds a 38.69% stake in the bank.
The off-market purchase is expected to settle on 24 May.
NatWest intends to cancel 336mln of the purchased shares and hold the remaining 133mln in treasury.
It explained holding the shares in treasury may provide the company with additional flexibility in the management of its capital base.
NatWest said the transaction would have reduced the company's CET1 ratio of 14.4% at 31 March 2023 by 71 basis points.