The Treasury is to sell up to 15% of NatWest in a trading plan over the next 12 months as it further reduces its stake in the bank.
NatWest, previously called Royal Bank of Scotland (RBS), was bailed out by the government in a £45.5bn rescue deal during the financial crisis more than a decade ago and remains 54.7% owned by the taxpayer.
The government said that under the trading plan, to commence on 12 August, shares “will only be sold at a price that represents value for money for taxpayers”.
But it is likely to crystallise a further loss for the Treasury, which bailed out RBS at 502p a share during the financial crisis.
They closed at just under 200p on Wednesday night, before details of the latest sale were announced, giving the bank a market value of £23bn.