Northern Rock 'set to defer £59m dividend payment'
Crisis-hit mortgage bank Northern Rock is set to withhold the dividend payment to shareholders it announced in July, it was reported today.
The BBC said Northern Rock had bowed to pressure and was now likely to defer the payment promised before the bank was thrown into turmoil.
The bank has come under increasing criticism over the payment, worth an estimated £59m (€84m), after the Bank of England stepped in as a lender of last resort to the Newcastle-based group less than two weeks ago.
The BBC added that an official announcement was expected either later today or tomorrow. Northern Rock was not immediately available for comment.
Northern Rock had been due to pay investors a 14.2p a share dividend on October 26, representing a 30% rise on the 10.9p paid out last year.
