RBS pays 2p dividend to ordinary shareholders

Royal Bank of Scotland has today made a dividend payment to its ordinary shareholders of 2 pence per share - its first dividend payment in a decade.

Around 190,000 ordinary shareholders, including UK Government Investments (UKGI) which controls the UK governments still more than 60 per cent stake in the bailed-out bank, will receive a total in the region of £240 million.

This is the first dividend payment the bank has made since 2008.

RBS has previously announced an intention to build to a payout ratio of around 40 per cent of attributable profits over time.

At H1 2018, RBS had a Common Equity Tier 1 capital ratio of 16.1 per cent, against a medium-term target of above 13 per cent.

Earlier this year, the government sold a tranche of RBS shares at 271p each, almost half the 502p a share it paid for them 10 years ago.

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 ten 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.”