NatWest Group facts for kids
NatWest Group PLC is a big British company that offers banking and insurance services. It's based in Edinburgh, Scotland.
This group runs many different banking brands. They offer services for everyday people, businesses, private banking for wealthy clients, and even investment banking. In the UK, some of their main banks are NatWest, Royal Bank of Scotland, NatWest Markets, and Coutts. They even print their own banknotes in Scotland and Northern Ireland!
Before a big financial crisis in 2008, NatWest Group was briefly the largest bank in the world. For a while, it was the second-largest bank in the UK and Europe. But then, its share price dropped a lot, and people lost trust. The UK government had to step in and help the bank out in 2008.
The government owned most of the bank until March 2022, but they have been selling their shares since then. Besides being listed on the London Stock Exchange, the company's shares are also traded on the New York Stock Exchange.
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![]() NatWest Group Registered Office in October 2007
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Formerly
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Public limited company | |
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Founded | 25 March 1968 |
Headquarters | Edinburgh, Scotland, UK |
Area served
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United Kingdom |
Key people
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Owner | UK Government Investments (29.82%) |
Number of employees
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61,500 (2023) |
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Contents
- History of NatWest Group
- How The Royal Bank of Scotland Group Started
- Growing Bigger: Taking Over NatWest
- More Growth and New Headquarters
- The 2008 Financial Crisis and Government Help
- Changes After the Crisis
- Making Changes to the Business
- Williams & Glyn Sale Plan
- Becoming NatWest Group in 2020
- More Government Share Sales
- How NatWest Group is Organized
- See also
History of NatWest Group
How The Royal Bank of Scotland Group Started
In the late 1960s, banks faced tougher economic times. To deal with this, the National Commercial Bank of Scotland and the Royal Bank of Scotland decided to join forces. This led to a new company called the National and Commercial Banking Group in 1968.
This company was later renamed The Royal Bank of Scotland Group in 1979. It became a public company in 1982, meaning its shares could be bought and sold by anyone.
Growing Bigger: Taking Over NatWest
In the late 1990s, many financial companies started merging. In 1999, the Bank of Scotland tried to buy a rival bank called National Westminster Bank (NatWest). The Bank of Scotland planned to sell off some of NatWest's smaller companies.
However, the Royal Bank of Scotland then made its own offer, starting a huge battle to buy NatWest. The Royal Bank of Scotland promised to keep all of NatWest's smaller companies, which was a big difference. Even though NatWest was much bigger than the Scottish banks, it hadn't been doing well financially.
On February 11, 2000, The Royal Bank of Scotland won the battle. This made it the second-largest banking group in the UK. The NatWest brand stayed, but many of its behind-the-scenes operations joined with the Royal Bank's, leading to job changes for many people.
More Growth and New Headquarters
In 2005, the bank expanded into China. It bought a 10% share in the Bank of China for £1.7 billion, but later sold it by 2009.
Also in 2005, the bank built a brand new international headquarters in Gogarburn, near Edinburgh. Queen Elizabeth II and Prince Philip, Duke of Edinburgh officially opened it.
In 2007, the group joined with two other banks, Fortis and Banco Santander, to buy a Dutch bank called ABN AMRO. Some people thought RBS paid too much for it.
Later, the bank announced it would focus more on the UK. The Chief Executive, Ross McEwan, said, "The days when RBS wanted to be the biggest bank in the world are over. Our goal is to be a bank for UK customers."
The 2008 Financial Crisis and Government Help
In April 2008, RBS announced it needed to raise £12 billion in new money to help with losses from the financial markets. This was the largest amount ever raised by a British company at that time.
On October 13, 2008, the British Government announced it would take a large share (up to 58%) in the group. This was to help the bank and others get more money so they could keep lending to people and businesses.
The government put £37 billion into Royal Bank of Scotland Group, Lloyds TSB, and HBOS to stop the financial system from collapsing. The government said it wasn't "standard public ownership" and that the banks would return to private investors later.
Because of this help, the chief executive of the group, Fred Goodwin, resigned. Stephen Hester took over in November 2008.
In January 2009, the government put more money into the UK banking system. They also changed their shares in RBS, increasing their ownership from 58% to 70%.
RBS also announced a huge loss of £24.1 billion for 2008, which was the biggest annual loss in UK company history. As a result, the group's share price dropped dramatically.
Changes After the Crisis
In September 2009, RBS and NatWest made big cuts to their overdraft fees, which was good news for customers.
In November 2009, RBS announced it would cut 3,700 more jobs, on top of 16,000 already planned. The government's share in the company also increased to 84%.
In 2010, even though the bank lost £1.1 billion, many senior executives received large bonuses. The CEO, Stephen Hester, received £8 million. This caused some public debate, especially since the government owned most of the bank.
In June 2012, a problem with the bank's computer system meant many customers couldn't move money in or out of their accounts. RBS had to open some branches on a Sunday, which was unusual.
In June 2013, CEO Stephen Hester announced he would step down. Ross McEwan, who was head of retail banking, was chosen to replace him.
The UK government started selling its shares back to private investors in August 2015. By March 2024, the government's ownership had fallen to 29.82%.
Making Changes to the Business
In June 2008, RBS sold one of its companies, Angel Trains, for £3.6 billion to raise money.
In March 2009, RBS closed its department that helped avoid taxes. This was partly because the bank didn't have enough money and partly because the government owned so much of it.
In January 2012, under pressure from the UK government, the bank announced it would cut 4,450 jobs and close some parts of its investment banking business that were losing money. This brought the total number of jobs cut since the 2008 bailout to 34,000.
In 2012, RBS separated its insurance business into a new company called the Direct Line Group. RBS sold its shares in this new group over the next few years, finishing in February 2014.
In October 2015, RBS sold its remaining shares in Citizens Financial Group, a US bank.
Williams & Glyn Sale Plan
When the British Government bought a large share in the group, the European Commission said RBS had to sell part of its business to encourage competition.
In 2010, RBS agreed to sell 318 branches to Santander UK, but Santander later pulled out of the deal in 2012.
In 2013, the group agreed to sell 314 branches to a group of investors. These branches were meant to become a new, separate bank called Williams & Glyn's.
However, in August 2016, RBS cancelled this plan, saying the new bank couldn't survive on its own. They then tried to sell the operation to another bank.
In February 2017, the government suggested RBS should stop trying to sell it and instead focus on helping competition in business banking. This plan was approved in September 2017.
Becoming NatWest Group in 2020
On February 14, 2020, it was announced that RBS Group would change its name to NatWest Group. This was because NatWest is the brand most people know. The change officially happened on July 23, 2020. The UK Treasury plans to sell all government shares in the business by March 2025.
The government has continued to sell its shares in NatWest. In March 2021, their holding dropped to 59.8%, and by March 2024, it was down to 29.82%.
How NatWest Group is Organized
NatWest Group has four main parts that deal with customers, plus many support teams.
Banking for Everyday People
This part of the bank handles banking for individuals and small businesses in the UK and Republic of Ireland. It uses the NatWest, Royal Bank of Scotland, and Ulster Bank names. Key banks here include:
Private Banking
This part of the group serves customers who have a lot of money. The main private banking brands are Coutts, Drummonds Bank, and NatWest and RBS Premier Banking.
Commercial and Institutional Banking

This section helps UK businesses, from small and medium-sized companies to large international ones. It's the biggest provider of banking and financial services to UK businesses. It also includes Lombard, which helps businesses finance equipment.
NatWest Markets is the part of NatWest Group that deals with investment banking. It offers financial solutions to big companies and financial organizations worldwide. NatWest Markets is strong in helping companies get loans, manage risks, and offer advice. NatWest Markets Securities is a key part of this, working in the United States.
The Royal Bank of Scotland International, also known as NatWest International, RBS International, Coutts Crown Dependencies, and Isle of Man Bank, is the group's offshore banking arm. It provides services to various customers from its base in the Channel Islands.
Support Teams
The group has many teams that support all the banking operations. These include teams for buying supplies, technology, payments, preventing money laundering, managing properties, and more. There are also teams that handle human resources, legal matters, and risk management.
Important Leaders
- Chairman: Sir Howard Davies (since February 2015)
- Chief Executive: Paul Thwaite (since February 2024)
Former Chairmen
- Sir James Blair-Cunynghame (1969–1978)
- Sir Michael Herries (1978–1991)
- Lord Younger (1991–2001)
- Sir George Mathewson (2001–2006)
- Sir Tom McKillop (2006–2008)
- Sir Philip Hampton (2009–2015)
Former Chief Executives
Before 1976, the group was just a holding company. The role of managing director was created in 1976 and later became group chief executive in 1985.
- John Burke (1976–1982)
- Sid Procter (1982–1985)
- Charles Winter (1985–1991)
- Sir George Mathewson (1992–2001)
- Fred Goodwin (2001–2008)
- Stephen Hester (2008–2013)
- Ross McEwan (2013–2019)
- Dame Alison Rose (2019–2023)
See also
- List of banks in the United Kingdom
- List of systemically important banks
- Systemically important financial institution
- Too big to fail
- High-yield debt
- Inter-Alpha Group of Banks