NatWest to pay UK government £190m as Farage crisis rocks bank

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NatWest will make a fresh £190m payout to its largest shareholder, the UK government, after Downing Street had an influence in the resignation of Alison Rose as the bank's chief executive amid a row over Nigel Farage's accounts.

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28 Jul 2023

The crisis-hit group said it was planning to pay dividends worth £500m to its investors after another strong quarter in which pre-tax profits rose by a higher than expected 27% to £1.8bn in the three months to June. That was compared with £1.4bn a year earlier, as the bank benefited from rising interest rates that allowed it to charge borrowers more for loans and mortgages.

The shareholder payout will benefit the UK government, which still holds a 38.5% stake in the lender after its £45m state bailout during the 2008 financial crisis. NatWest also announced a £500m share buyback on Friday morning but that will only benefit investors whose shares are traded on the public stock market, meaning it will not affect the taxpayer’s stake.

It comes during a chaotic week for NatWest Group after the departure of Rose and the