LONDON (Reuters) – Royal Bank of Scotland will consult with shareholders on plans to buyback shares owned by the British government using excess capital to accelerate a return to private ownership.
The lender told investors it would hold a general meeting on Feb. 6 to vote on the plan.
RBS - Percent - Taxpayers - Pound - Bailout
RBS is 62.3 percent owned by British taxpayers, after a 45 billion pound ($58 billion) bailout during the financial crisis.
Chief Executive Ross McEwan has made returning the lender to private hands a top priority during his tenure at the bank.
Process - Markets - Criticism - Opposition - Politicians
But the process has been slow due to turbulent markets and criticism from opposition politicians at losses incurred.
The last two sales of state-owned stock crystallized combined losses of more than 3 billion pounds.
Losses - RBS - Stock - Percent - Thursday
Further losses are all but inevitable. Although RBS stock closed 1 percent higher on Thursday at 237 pence after the buyback plan announcement, it is still far below the 502 pence level it was trading at when it was bailed out in 2008.
RBS said a share buyback would help accelerate the process.
Resolution - Bank - Flexibility
“This resolution would provide the bank with the flexibility to use some of its...
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