Ulster Bank will pay a €1.5bn dividend - its first since the crash

It says that this is an important milestone in the bank's recovery

Ulster Bank will pay a €1.5bn dividend - its first since the crash

INPHO/Dan Sheridan

Ulster Bank is preparing to pay a €1.5bn dividend to its parent bank - Royal Bank of Scotland.

In a statement to the Irish stock exchange it said that the payment will be made at the end of this month.

It added that the bank's balance sheet is healthy enough to maintain a strong capital position after the payment - and that it will remain significantly above regulatory capital minimums.

The institution is seeking regulatory approvals from the Joint Supervisory Team of the Central Bank and the ECB.

The bank's chief executive Gerry Mallon said that this represents a "milestone" for the Irish bank:

"Ulster Bank remains very well capitalised with a strong balance sheet and is well-positioned to continue to support customers’ ambitions through our excellent products and service," he commented.

It previously received a bailout worth almost £15bn from RBS.

Ulster Bank recently reported an operating profit of €69m for its third quarter - that was €74m lower than 12 months before.