CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

RBS 2018 Results: lender boosts dividend, Brexit threatens cost hikes

Royal Bank of Scotland will increase its pay-out to shareholders after more than doubling its profit in 2018, but Brexit remains a major concern for the lender with the March 29 deadline less than six weeks away.

Royal Bank of Scotland (RBS) has increased the size of its dividend to shareholders after more than doubling its profit in 2018, but Brexit continues to be concern for the UK lender and the wider economy.

‘In 2018 the bank delivered a good financial performance, despite an uncertain economic outlook and a highly competitive environment,’ RBS Chairman Howard Davies said.

‘Paying a dividend for the first time in a decade showed continued progress in building a stronger, safer bank that is capable of delivering improving returns for shareholders.’

RBS results: key figures

The lender more than doubled its operating profit before tax to £3.4 billion in 2018, up from £2.2 billion a year prior, making it the bank’s second consecutive year in the black, with the news fuelling speculation that the UK government will look to sell-down its stake in RBS in the near future.

‘2018 was a year of strong progress on our strategy - we settled our remaining major legacy issues, paid our first dividend in ten years and delivered another full year bottom line profit,’ RBS CEO Ross McEwan said.

‘However, while our financial performance is more assured, we know that a significant gap remains to achieving our ambition to be the best bank for customers. We are fully focused on closing this gap.’

RBS share price climbs 3% this week in anticipation of strong 2018 results

The lender’s share price climbed 1.1% on Friday after announcing an impressive set of full-year results, with its stock likely to edge higher had it not been for its CEO warning that the bank could see a rise in bad loans as businesses will likely struggle due to economic uncertainty around Brexit.

‘The area where we have seen a slowdown is in the large corporates,’ McEwan told reporters. ‘They are pausing investment and waiting to see what the outcome on Brexit will be.’

Over the course of this week, RBS has seen its share price climb more than 3% as investors grew excited as forecasters rightly predicted a strong end to 2018 for the UK lender.

RBS increases its dividend pay-out to shareholders

The lender told investors, of which the UK government is a majority shareholder, that it would increased it annual dividend to 3.5p a share, along with an additional special pay-out of 7.5p a share.

The increase in its dividend after a tough decade for the bank, which had to be bailed out by the UK government to the tune of £45.5 billion after the 2008 financial crisis and was served with a $4.9 billion fine from the US Department of Justice over mis-selling mortgages.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Be ready to act on ECB opportunities

Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 22 April 2021.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.