The Royal Bank of Scotland is to pay its first dividend since the financial crisis ten years ago.
The bank will pay two pence a share as an interim dividend once its provisional $4.9 billion settlement with the US Department of Justice is completed.
“The turnaround of the bank is almost complete,” said Ross McEwan, the group’s chief executive.
“We still have a lot more to do to achieve our ambition of being the best bank for customers in the UK and Republic of Ireland. “However, with our major legacy issues largely behind us, we are able to fully focus on closing this gap,” he added.
The treasury will receive £149 million from the £240 million dividends as the bank is still 62 percent owned by the UK government.
RBS reported its first annual profit in ten years in February.
“RBS has made tremendous progress in addressing legacy issues over the past 12 months such that it is now in a position to resume dividend payments and plan additional capital distributions to shareholders,” said Gary Greenwood, an analyst at Shore Capital.
“Despite this positive progress, the shares have been weak of late and are beginning to look more interesting to us,” he added.
The bank has made no comment over its controversial Global Restructuring Group (GRG), which was criticised over its treatment of small and medium-sized business customers.
The Financial Conduct Authority has said that no action would be taken against RBS over the controversy.
The bank has offered a total of £125 million to the victims of GRG.
“It is important to recognise that the business of GRG was largely unregulated and the FCA’s powers to take action in such circumstances, even where the mistreatment of customers has been identified and accepted, are very limited,” said Andrew Bailey, the FCA chief executive.
Shares in the group (LON: RBS) rose three percent to 257.6p in early trading.