Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

RBS deal could spark divi return

RBS deal could spark divi return

Royal Bank of Scotland has paved the way to resume dividend payments once its financial health improves.

The bank has negotiated the removal of a barrier to dividend payments, the FT reported. The deal agreed with the Treasury to buy out the so-called dividend access share (DAS) could allow the part-nationalised lender to resume payouts when its finances improve. DAS was a financial agreement that gave the government preferential dividend rights and made it prohibitively expensive for the bank to resume payouts to ordinary investors.

The bank also secured an extension to 2016 to sell Williams & Glyn’s, which was built from the 316 branches it has to dispose of as a condition of its bailout.

RBS is still lossmaking, so dividends could still be some way off as it rebuilds capital.

The bank said it had agreed to buy out the DAS for £1.5 billion which will not all be paid upfront. It will initially pay £320 million to the Treasury, with the remainder paid in flexible instalments to the Treasury. Any unpaid amount will increase 5 per cent per year from 2016.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter