RBS sell-off could start this year

RBS building

The Government could start selling down its stake in Royal Bank of Scotland this year, according to City analysts, after the taxpayer-backed lender agreed a deal with the Treasury that could lead to the return of dividend payments.

The Daily Telegraph reports that the deal to scrap the Dividend Access Share (DAS), which barred shareholder payouts, may accelerate the Government’s exit, analysts at Jefferies said.

Many investors do not expect the state to begin offloading shares in RBS until after next year’s general election.

'The path to full privatisation could be set in motion earlier-than-expected', the analysts argued. 'While we do not believe that the Government has to be fully in the black on its RBS shareholding before starting to sell shares, it wouldn’t hurt if it was close.

'We believe that from a public finances perspective, the Government may not be as far out of the money as received wisdom suggests'.

To access the complete Daily Telegraph article hit the link below:

Treasury could cut RBS stake following dividend deal

Co-operative Bank expects years in the red after £1.3bn loss

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News