Royal Bank of Scotland (RBS) has announced plans to reinstate a dividend for the first time since the financial crisis, declaring an interim dividend of 2p per ordinary share in its half-year report today.
The payment of the dividend and the timing is dependent on when a fine by the US Department of Justice is finalised, relating to an investigation into RBS's issuance and underwriting of US RMBS. RBS said it expects to build to a regular dividend payout ratio of around 40% over time and will consider further distributions in addition to regular dividend payouts, subject to both the agreement of the Prudential Regulation Authority and passing the 2018 Bank of England stress test. The bank added further distributions are not likely to happen until 2019. The UK government sold a 7.7% s...
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