The government has sold a £1.1bn chunk of NatWest taking its holding in the state-backed bank to less than 60%.

NatWest, then known as Royal Bank of Scotland, was saved by taxpayers in a £45.5bn rescue deal during the financial crisis more than a decade ago.

The latest deal reduces the Treasury’s holding in the lender from 61.7% to 59.8% after a tranche of shares was sold back to NatWest – rather than to the market.