RBS declares interim dividend after final settlement with US authorities

Royal Bank of Scotland has announced that it has reached a final settlement with the US Department of Justice to resolve its investigation into RBS’s misconduct over the way the bank sold mortgage-backed securities, or loans packaged up into bonds and sold to investors, between 2005 and 2008 in the lead up to the financial crisis.

Under the terms of the settlement and as previously announced on 10 May 2018, RBS will pay a civil monetary cash penalty of US $4.9 billion (£3,715 million at 30 June 2018 exchange rates) out of existing liquidity resources.

The financial and capital impacts of the agreement were referred to in the RBS Group and NatWest Markets Plc and other RBS entities Half Year results as announced on 3rd August 2018.

The bank also confirmed today its intention - also announced in its half year results - to pay an interim ordinary dividend of 2 pence per share.

The dividend shall be paid on 12 October 2018 to shareholders on the register at the close of business on 24 August 2018. The ex-dividend date will be 23 August 2018.

Ross McEwan, RBS Chief Executive, said: “We are pleased to have reached a final settlement with the DoJ and that we can focus our energy on serving our customers better and returning capital to our shareholders.”

“This settlement dates back to the period between 2005 and 2007. There is no place for the sort of unacceptable behaviour alleged by the DoJ at the bank we are building today.”