August 3, 2018 / 6:06 AM / 4 months ago

Britain's RBS announces first dividend in a decade

LONDON, Aug 3 (Reuters) - Britain’s Royal Bank of Scotland announced its first dividend in a decade on Friday after reporting a pre-tax profit of 1.8 billion pounds ($2.34 billion) for the first half of the year.

The bank said it would pay an interim dividend of 2 pence per share, subject to a $4.9 billion settlement with the U.S. Department of Justice (DOJ) being finalised.

Its attributable profit for the second quarter stood at 96 million pounds, well above the 741 million pound loss expected by analysts according to a bank-compiled average of their forecasts.

That was even after booking a 1 billion pound charge to cover the settlement with the DOJ, which related to RBS’s mis-selling of toxic mortgage-backed securities in the run up to the crisis. The settlement, agreed in May, paved the way for the bank to make its first payout to shareholders since early 2008.

RBS reported a common equity tier one capital ratio - a measure of banks’ financial strength - of 16.1 percent, after accounting for the DOJ settlement, the impact of the dividend and after paying 3.5 billion pounds to shore up its pension fund. ($1 = 0.7679 pounds) (Reporting by Emma Rumney, Editing by Lawrence White)

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