RBS plays Santa to NatWest investors

ROYAL Bank of Scotland will be making a £1.5bn early Christmas present to shareholders in the old NatWest.

Fred Goodwin, Royal's chief executive, took over NatWest nearly four years ago. As part of that deal, investors received additional value shares, paying out bonuses between 1 December, 2001, and 1 December, 2003, provided that the takeover proved a success.

Investors are due a 55p-per-share payment next month.

The three-year plan to integrate NatWest, formerly a basket case, is complete. Goodwin - known as Fred the Shred for his merciless cost-cutting - said the merger will produce annual benefits of just over £2bn from next year, instead of the £1.4bn initially promised.

RBS this autumn hit the takeover trail yet again with the £618m purchase of Irish mortgage bank First Active.

Goodwin has done a series of deals in the US and is keeping a close eye on ailing Abbey, though he believes the competition authorities would block his path.