You are here: Home - Insurance - News -

RBS could be taxpayer-owned for further decade

Written by:
State-owned lender Royal Bank of Scotland (RBS)has predicted it could take ten years to fully return to the private sector, according to reports.

The bank intends to be ready to start paying dividends in late 2014, which would be seen as a signal it will be ready to re-enter the private sector, the Times reports.

After further repairs to the bank’s balance sheet over the next 18 months, senior RBS figures believe it will be returned to the private sector in four offerings over ten years. That would equate to four rounds of shares worth over £10bn, the paper reports. 

In 2008, Gordon Brown’s government bought a controlling stake in RBS for £45.5bn at 50p a share, or 500p a share post consolidation.

The market value of RBS shares was 41p at the time, but the government paid an extra £12bn to help protect RBS.

Liberal Democrat leader Nick Clegg has previously suggested every adult in Britain could be given RBS and Lloyds shares worth hundreds of pounds under plans to create a “people’s banking system”.

RBS is set to announce it has settled with British and US regulators over LIBOR-fixing, and this week it will also hold further discussions with the FSA about the levels of capital it should hold.

The Treasury has blocked further injections of taxpayer cash, meaning further capital can only be raised by shrinking and selling existing divisions, the Times reports.

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Chancellor’s Autumn Statement: What can we expect?

As Chancellor George Osborne prepares to deliver his Autumn Statement on Wednesday, we look at some of the main measures...