The government has sold £1.2bn worth of shares in NatWest.

This brings the government ownership of NatWest from 50.6% to 48.1% – meaning the bank is now back to private ownership after having to be bailed out by the government during the financial crisis.

A total of 550 million shares went for 220.5p each through an off-market purchase by NatWest itself.

It is the fifth such deal since the original bailout.

Economic secretary to the treasury John Glen says: “This sale means that the government is no longer the majority owner of NatWest Group and is therefore an important landmark in our plan to return the bank to the private sector.

“We will continue to prioritise delivering value for money for the taxpayer as we take forward this plan.”