The Treasury has cut its stake in NatWest to below 20% for the first time since the bank was bailed out during the financial crisis. 

UK Government Investments, the government’s investment vehicle, reduced its holding in the bank to 19.97%, from 20.92%, after selling off 81 million shares, the lender said in a stock market statement. 

Taxpayers owned 38% of the bank as recently as December. 

The move comes after a planned public share sale in the lender this summer was scrapped after former Prime Minister Rishi Sunak called a general election for 4 July.  

NatWest chief executive Paul Thwaite said: “Returning NatWest Group to full private ownership remains a key ambition. 

“We believe it is in the best interests of both the bank and all our shareholders.” 

The state rescued the bank from going bust during the height of the financial crisis in 2008, taking an 84% stake in the business after pumping £45.5bn into the lender.