Gov­ern­ment pock­ets £150m as RBS re­veals div­i­dends

Evening Times - - NEWS -

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.”

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