Tue, Sep. 15, 9:05 AM
- Royal Bank of Scotland (NYSE:RBS) is unlikely to pay a dividend, Berenberg says, until it can show regulators two years of profit -- which means until at least 2018, a year later than expected.
- The bank had been promising to return excess capital from divestments as soon as Q1 2017.
- It's got to pass English stress tests first. And settle with U.S. regulators, say the analysts, who have a Sell on RBS. "We would be surprised if the regulator did allow the ‘excess’ capital to be returned before RBS had been profitable for two years."
- The Bank of England is set to publish its look at British lenders' health in December.
- RBS shares are down 17.1% YTD.
Apr. 10, 2014, 3:27 AM
- RBS (RBS) has agreed to pay £1.5B ($2.5B) to the U.K. government to end the sides' dividend access share arrangement, which has been in place since the bank's £45.8B bailout during the financial crisis and gives the Treasury priority over dividend payments.
- The cancellation clears another obstacle to RBS's privatization and enables the bank to make its future dividend policy more clear. However, RBS has no plans to restart shareholder payouts in the near future.
- Meanwhile, the EU has given RBS extra time to divest 315 branches that the bank has to sell as a condition of its bailout. RBS must start selling shares in the branches, re-branded as Williams & Glyn, by the end of 2016 and divest the whole interest a year later. RBS plans to float Williams & Glyn in an IPO.
- RBS shares are +1.7% in London.
Royal Bank of Scotland Group (The) PLC is an international banking and financial services company. The Company through its subsidiaries provides banking products and services to personal, commercial and large corporate and institutional customers.
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