RBS recovery nears as bank set to pay first dividend in 10 years

rbs profit

Royal Bank of Scotland has seen first-half profits fall, but is on course to pay its first dividend in 10 years.

The bank said it would be paying 2p a share as an interim dividend as soon as its $4.9bn (£3.8bn) settlement with the US Department of Justice over mortgage-backed securities was completed.

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

Attributable profit was £888m, compared with £939m in 2017.

RBS booked a £1bn charge to deal with the settlement with US regulators, which was agreed in May. It relates to RBS’s mis-selling of the securities in the run-up to the financial crisis.

The bank had already put aside money to cover the rest of the cost.

It said it expected the deal with the Department of Justice to be finalised within months, paving the way for the dividend to be paid out.