RBS pays first dividend since 2008 taxpayer bailout

Royal Bank of Scotland on Friday paid its first dividend since it almost went under in the 2008 financial crisis.

The bank, 62% owned by the taxpayer, paid 2p a share to investors, including 190,000 private shareholders. The government will get around £240m as its cut.

"This is another important milestone in our turnaround, almost 10 years to the day that RBS was rescued by the British taxpayer," said chief executive Ross McEwan.

"We have created a smaller, safer bank that is generating more sustainable profits. Our capital position is above our target and we are also looking to return any excess capital as soon as possible to shareholders."

The bank received an emergency £45bn government bailout in 2008. Earlier this year, the Treasury sold a tranche of RBS shares at 271p each, almost half the 502p a share it paid for them a decade ago.