Published: Mon, August 06, 2018
Business | By Eloise Houston

Britain’s RBS announces first dividend in a decade

Britain’s RBS announces first dividend in a decade

Recently, In analysts note revealed to investors on Friday, 3 August, Royal Bank of Scotland Group The PLC (LON:RBS) shares have had their Hold Rating maintained by professional analysts at Shore Capital, who now has a GBX 285.00 PT on company.

The bank said it envisaged share buybacks and ramping up the dividend to a 40% payout ratio, subject.

It was hit by £801m in litigation and conduct costs over the period, helping to cover the $4.9 billion (£3.7bn) settlement reached with the US Department of Justice (DoJ) earlier this year over claims that it mis-sold mortgages in the run-up to the financial crisis.

The bank added further distributions are not likely to happen until 2019.

Royal Bank of Scotland reinstated its dividend despite posting a fall in first-half profit owing to penalty payments and weaker margins.

The lender remains majority-owned by the British government after receiving the world's biggest banking bailout at the height of the financial crisis. Operating profits in the second-quarter halved to £613m compared to the first quarter and the second quarter previous year, but this was much better than expected, with City analysts having pencilled in a loss of £340m. The ability to get back into paying dividends.

Helal Miah, investment research analyst at The Share Centre, described the results as "very encouraging", showing "good signs of progress".

"Operating profits in the second quarter came in at £613m, some way behind the first quarter figures but well ahead of expectations", he said.

Royal Bank of Scotland Group plc with EPIC/TICKER (LON:RBS) had its stock rating noted as "Retains" with the recommendation being set at "HOLD" today by analysts at Shore Capital. The 1 year high for the share price is 304.2 GBX while the year low stock price is now 239.6 GBX.

Analysts expect The Royal Bank of Scotland Group plc (NYSE:RBS) to report $0.18 EPS on August, 3.They anticipate $0.06 EPS change or 25.00 % from last quarter's $0.24 EPS.

The cost of the settlement meant that RBS banked lower profits for the January-to-June period than in 2017.

With the first dividend in a decade, investor sentiment could improve over the near term.

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