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RBS mulling paying one-off dividend with surplus capital - report

The bank could return 33p per share to investors through a special dividend, on top of an expected interim dividend of 2p per share due in October
RBS mulling paying one-off dividend with surplus capital - report
RBS chairman Howard Davies said the bank would consider paying a special dividend if shareholders were in favour of it

Royal Bank of Scotland Group (LON:RBS) could use up to £4bln of surplus capital to pay a special one-off dividend to shareholders, according to a report in the Times newspaper.

The bank’s Chairman Howard Davies told the Times that the bank would prefer to use the spare cash to buy RBS shares back from the UK government but would consider paying a special dividend if shareholders were in favour of it.

READ: RBS to axe more branches, outpacing Lloyds, HSBC and Barclays with closures

“If there are a lot of shareholders pressing for a special dividend, that is something we would consider,” Davies told The Times.

A special dividend could be used to pay about 33 pence a share to investors, the Times said.

In August, RBS said it would pay an interim dividend of 2 pence per share in October, its first handout to investors since the bank was bailed out following the 2008 financial crisis.

Shares in RBS, which have shed some 8% of their value so far this year, were 1.7% up at 249p in early trade.

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