Government pockets £150m as RBS reveals dividends
THE Government has pocketed £150 million as Royal Bank of Scotland coughed up the first dividend since its £45 billion bailout a decade ago.
The bank paid out a total of £240 million to around 190,000 ordinary shareholders including UK Government Investments, which manages the Government’s 62 per cent stake.
RBS announced the 2p per share interim dividend in August after reaching a 4.9 billion US dollar (£3.7 billion) settlement with US authorities over claims that it missold mortgages in the run-up to the financial crisis.
The shareholder payout comes almost 10 years to the day since the bank received the first tranche of a Government rescue package at the height of the banking crash on October 13 2008.
Chief executive Ross McEwan said: “I’m pleased to be able to pay a dividend to our shareholders; a small return after their many years of patience and a testament to the hard work of everyone at this bank.
“This is another important milestone in our turnaround, almost 10 years to the day that RBS was rescued by the British taxpayer.
“We have created a smaller, safer bank that is generating more sustainable profits.
“Our capital position is above our target and we are also looking to return any excess capital as soon as possible to shareholders.”