- Chair hails 'bold decision' that saved millions of customers
By the time Rick Haythornthwaite addressed shareholders at NatWest Group PLC's (LSE:NWG) annual meeting this morning, the symbolism was hard to miss.
For the first time since the financial crisis, the UK government is no longer the bank’s largest shareholder.
And in a moment of notable candour, the chair of NatWest took time to acknowledge the extraordinary support that helped make today’s meeting possible.
“We remain incredibly grateful to the government, and to UK taxpayers,” he said, “for their intervention and support, which protected millions of savers, homeowners and businesses at a time of global crisis.”
That acknowledgement came as the state’s holding in NatWest fell below 3%, down from nearly 40% at the start of last year, placing full private ownership firmly within reach.
The bank, formerly known as Royal Bank of Scotland, was effectively nationalised in 2008 during the financial meltdown.
A new chapter
Haythornthwaite described 2024 as a year of “significant progress”, pointing to strong share price performance, over £4 billion in capital returns to investors, and the shift from government ownership as evidence of transformation.
“This will be a symbolic moment,” he said, “marking a new, forward-looking chapter in our story.”
With the worst of the crisis long behind it, NatWest is now positioning itself for growth, and investors were reminded of the scale of change the bank has undergone.
Gone are the complex structures and sprawling risk exposures of the pre-crisis era. In their place: a more focused, tech-enabled model and a strategy aimed at deepening customer relationships, simplifying operations and sharpening capital allocation.
Digital drive and AI push
Chief executive Paul Thwaite said the bank had exceeded upgraded targets on income and returns in 2024, with a 17.5% return on tangible equity and £14.6 billion in underlying income.
Lending, deposits and assets under management all grew, with nearly half a million new customers joining the bank last year.
He highlighted digital innovation as a key driver of growth. Around 80% of NatWest’s retail customers now bank entirely online, while new technology is reducing turnaround times for services like mortgages and FX.
The bank’s AI-powered customer assistant, Cora, handled 18 million queries last year, and a generative AI pilot increased customer satisfaction by 150%.
The bank has even partnered with OpenAI to help accelerate its roll-out of advanced tools, becoming the first UK-based lender to do so.
A return to relevance
The AGM came with a clear message: NatWest no longer wants to be defined by the bailout.
With a restructured balance sheet, stable leadership and a strategy grounded in simplification and digital growth, the bank hopes to reassert its role in supporting the broader UK economy.
Thwaite said a stronger NatWest could now play a vital role “shaping our future as a vital and trusted partner to our customers and to the UK itself.”
But both he and Haythornthwaite were careful to temper optimism with realism, acknowledging that today’s achievements rest on past support - and that maintaining the trust of shareholders and customers will be key to the next chapter.