The Royal Bank of Scotland Group intends to pay dividends in 2014.
On 4 May, RBS announced it will resume discretionary coupons and dividend payments on preference shares, which have been deferred for the past two years. It still does not pay dividends on ordinary shares.
According to The Times, the bank intends to be ready to start paying dividends in late 2014.
After a further 18 months of bolstering the bank’s balance sheet, senior RBS figures believe the bank will be returned to the private sector in four share offerings worth more than £10bn each over 10 years, reports The Times.
In 2008, the Government pumped £45.5bn pounds into RBS, giving it an 82 per cent holding in the bank.