Despite Bob Diamond's comments earlier (see post at 8.14am), RBS is leading the FTSE 100 risers with its share price up 1.72% at 248.9p.
RBS's chairman Sir Howard Davies says that the bank could use £4bn of surplus capital to pay a special one-off dividend to shareholders.
Marks & Spencer is the morning's biggest faller, down 2% at 287.4p.
The wider FTSE 100 is off 0.10% at 7,305.99.
Irish sandwich maker Greencore is the largest gainer on the FTSE 250, up 4.95% at 201.2p.
ContourGlobal, the power generation firm, is off 4.4% at 203.7p.
The FTSE 250 is marginally lower at 20,373.93.