NatWest Group PLC (LSE:NWG) shares neared a five-year-high after jumping around 6% on the back of a strong first-quarter update and news the government has further sold its stake.
After reporting its results, the lender revealed the government's stake in it has dropped below 28% as part of the ongoing sale strategy which was launched in August 2021.
Britain's Treasury now holds a 27.93% stake in the lender, down from 28.9%.
It comes around sixteen years after the government was forced to rescue the group formerly known as Royal Bank of Scotland during the 2008 financial crisis and to build an 84% stake.
Plans for a public sale of the government's NatWest shares are scheduled for this summer.
Chief executive Paul Thwaite said:“Returning NatWest Group to private ownership is a shared ambition and one that we believe is in the best interests of the bank and all our shareholders.”
It comes after the group reported a 47% year-on-year decline in mortgage lending in the first quarter of 2024, with total lending down from £9.9 billion to £5.2 billion.
However, forecasts were maintained and investors appear to be pleased with its plans.