22nd Mar 2016 07:57
LONDON (Alliance News) - Royal Bank of Scotland Group PLC on Tuesday said it has made its final dividend access share payment to HM Treasury, clearing the way for the lender to resume dividend payments to shareholders.
The dividend access shares were issued by RBS in 2009 when HM Treasury pumped GBP25.5 billion of equity into RBS as part of its government bailout at the height of the financial crisis.
RBS said it has made a GBP1.19 billion payment to HM Treasury which will be reflected in its financial statements for the first quarter of 2016.
On retirement, the dividend access share will be re-designated as a single B shares which will then be cancelled, RBS said.
"This is another important milestone in our plan to resume capital distributions to our shareholders, and represents one less hurdle in our path to build the number one bank for customer service, trust and advocacy," said RBS Chief Executive Ross McEwan.
By Sam Unsted; [email protected]; @SamUAtAlliance
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