Who owns Coutts bank? Natwest Group ownership explained amid Nigel Farage scandal

NatWest boss Dame Alison Rose has stepped down as chief executive effective with immediate effect after admitting to being the source of an inaccurate story about Nigel Farage’s bank account, which she leaked to a BBC journalist.

Sir Howard Davies, chairman of the NatWest Group, said on Wednesday (July 26) that the board and Dame Alison, who has held the role for four years,  agreed by “mutual consent” that she would step down from her role.

Her resignation came as no surprise following briefings by Downing Street that she had lost the confidence of the prime minister and chancellor. Farage also accused the management of Coutts Bank - which is owned by NatWest - of a "serious breach" and called Dame Alison’s position "totally untenable".

The scandal originally surfaced when the BBC falsely claimed that Mr Farage’s account had been cancelled because he didn’t meet Coutts’s financial requirements. Later, Farage was able to get documents that proved his political affiliations and ideas had a role in the decision-making process.

But what is Coutts Bank, and who is it owned by? Here is everything you need to know about it.

What is Coutts Bank?

Coutts Bank, also known simply as Coutts, is a private bank based in the UK. It is one of the oldest private banks in the world, with a history dating back to 1692, AND primarily focuses on providing banking and wealth management services to high net-worth individuals, wealthy families and select institutions.

Originally established by John Campbell, the bank's primary purpose was to serve the British royal family and nobility. Over the centuries, it has retained its reputation for catering to affluent clients and has built a brand associated with exclusivity and a personalised service for its relatively small client base.

Who owns Coutts Bank?

Coutts Bank is owned by NatWest Group (formerly known as The Royal Bank of Scotland Group or RBS Group) one of the largest banks in the UK established in 1968. Coutts operates as a wholly-owned subsidiary of NatWest Group, serving as its private banking arm.

Who owns NatWest Group?

NatWest Group is a publicly traded company on the London Stock Exchange, and is predominantly privately owned, with shares held by various investors, including institutional shareholders and retail investors.

During the 2008 global financial crisis, RBS Group, of which NatWest was a part, faced severe financial difficulties and was bailed out by the UK government. As a result of this financial crisis, the UK government acquired a significant stake in RBS, which at the time was the majority shareholder.

Over the years following the crisis, the UK government gradually reduced its ownership stake in NatWest Group by selling shares to the public through the process known as "divestment" or "privatisation," which aimed to return the bank to private ownership and reduce the government's influence on the institution.

The government retained a majority share in NatWest Group until March 2022. Following a buyback by the NatWest Group, the government now holds a 39% share in the company.