RBS clears path to dividends

 
Tim Wallace
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RBS has agreed to pay the government £1.5bn before it gives shareholders a dividend, the lender announced yesterday.

It has struck a deal to buy back the dividend access share, which was put in place as part of its bailout.

RBS will pay £320m immediately, and the remainder when it is able.

Once it has bought back the share and the regulator approves of its capital position, the bank will be able to pay out profits as dividends.