Home Business NewsBusinessBanking News RBS profits rise as bank hopes to pay first dividend in a decade

RBS profits rise as bank hopes to pay first dividend in a decade

by LLB Reporter
3rd Aug 18 6:12 am

RBS reports an attributable profit of £888m and an operating profit before tax of £1,826m for H1 2018.

These figures include a £1 billion charge related to the settlement in principle with the US Department of Justice, which was announced in May.

The bank also announces an intention to pay its first dividend in ten years – subject to a final settlement with the DoJ. The intention is to pay an initial 2p interim dividend, building over time to around a 40% pay-out ratio.

The bank’s Common Equity Tier One capital ratio is 16.1%. This includes the negative impact of the pension contribution, the settlement in principle with the DoJ and the intended dividend payment.

CEO Ross McEwan said: @We are pleased with the progress we’ve made in the first half of 2018 and see these as a good set of results in a more uncertain and highly competitive environment. We are also pleased to announce an intention to pay our first dividend in ten years, subject to a final settlement with the DoJ.

“Our sector is undergoing significant change and we are positioning ourselves well to compete. We still have a lot more to do to achieve our ambition of being the best bank for customers in the UK and Republic of Ireland.   However, with our major legacy issues largely behind us, we are able to fully focus on closing this gap.”

Leave a Comment

You may also like

CLOSE AD

Sign up to our daily news alerts

[ms-form id=1]