National Westminster Bank (NWG.US) has spent 1 billion pounds to buy back stocks from the UK government.

UK banking giant National Westminster Bank (NWG.US) successfully repurchased approximately 1 billion (about $1.29 billion) worth of stock assets from the UK government, as the UK Treasury continues to reduce its stake in the banking giant. This move is seen as a strong effort to boost investor confidence in National Westminster Bank. According to a recently released statement, this off-market repurchase of about 262.6 million shares reduced the UK Treasury's voting control in the bank from about 14.2% to about 11.4%. This transaction marks National Westminster Bank's second off-market buyback in a 12-month period. Earlier this year, the UK Financial Conduct Authority simplified the country's listing rules and shareholders approved a plan allowing the bank to increase the limit on off-market buybacks from about 5% to 15%. "This transaction is another important milestone on the path to full privatization of the UK financial industry," said National Westminster Bank CEO Paul Swift in another statement. "We believe this is a positive use of capital for the bank and shareholders, and we are pleased with the continued momentum of the UK Treasury's reduction of its stake in National Westminster Bank this year." Since the beginning of the year, the UK government has been rapidly reducing its stake in National Westminster Bank. As of the end of last year, the UK government held around 38% of the voting rights in the company. In recent months, with off-market buybacks and a series of public stock sales, the share price has declined. Under former Prime Minister Rishi Sunak's leadership, UK officials have been working on a plan to sell the government's bank shares to retail investors, with the goal of selling off all government-held shares by 2026 to generate significant profits and reduce the UK government's massive debt. The Labour Party, which won the election, has abandoned these efforts. It was previously reported that UK Finance Minister Rishi Sunak was considering selling most of the government's stake to institutional shareholders.