TSB to be floated to meet EU rules

TSB is being floated to meet EU rules regarding state aid. With dividends not being paid out until 2017, Paul Pester, chief executive of TSB, said: “Our business is all about growth. We plan to invest every penny we can to grow, so we will not be paying significant dividends. That will affect our valuation.”

Matthew Beesley, Henderson Global Investor’s head of global equity, said: “Investors will want to be convinced that this is a bank that will not be aggressively chasing market share as the housing boom continues.”

Robert Forbes, financial planner at the London-based Plutus Wealth Management, said: “It is positive, but will be interesting to see the take up after all the bluster surrounding Royal Mail. Will people pile in without delving into whether it’s a good deal or not?”

Article continues after advert