Royal Bank Of Scotland Share Discussion Threads

[avatar333] 03/8/2015 08:47

Morning.

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[leedskier] 03/8/2015 07:33

European markets are set to open lower with investors spooked overnight by a widely watched survey showed factory activity in China shrank by the most in two years.

The FTSE 100 is expected to open five points lower at 6,691 this morning, with the German Dax four points lower at 11,304 and the French Cac four points lower at 5,078.

In corporate news Britain's biggest bank HSBC reported a 10 per cent rise in profits to $13.6bn (£8.7bn) for the first six months of this year, compared with $12.3bn a year ago. The bank beat expectations for $12.5bn.

The owners of low-cost fitness chain Gym Group are eyeing a £300m float on the London stock market just over a year after abandoning plans to merge with rival Pure Gym.

And Arriva, the company which runs London’s distinctive Routemaster buses, could make a return to the London stock market five years after being privatised.

"We are executing the actions that we announced at our investor update in June and our focus is on making significant progress during the remainder of the year," the company said.

The Athens Stock Exchange is expected to fall sharply when it re-opens this morning after five weeks of being shut. It was closed on June 26, ahead of the government’s imposed capital controls to stop the possibility of capital flight from the country.

Read more: Greek shares anticipated to plunge as much as 20 per cent when stock exchange reopens

Corporate news:

HSBC's profit rose 10 per cent to $13.6bn (£8.7bn) in the first six months of this year.
Intertek's pretax profit rose to £139.1m in the six months to the end of June, from £119.8m during the same period a year earlier,
German lender Commerzbank's second-quarter net profit more than doubled to €280m (£197m).
Heineken's net profit rose to €1.14bn, up 88 per cent from €631m a year earlier.
Advisory firm AlixPartners has nabbed Simon Freakley to be co-chief exec alongside current chief exec Fred Crawford.
Economic data

PMI manufacturing, Germany, 8.55am
PMI manufacturing, EU, 9.00am
PMI manufacturing, UK, 9.30am

[smurfy2001] 02/8/2015 11:09

RBS, why the rush to sell it off?

George Osborne has everything in place to sell off RBS – it’s just that the taxpayer does not need to

Sir Philip Hampton said the results released by Royal Bank of Scotland last week were like “groundhog day”. The bank’s outgoing chairman was referring to the fact that decent growth in operating profits was wiped out by a string of charges for past misdeeds. It also feels like groundhog day for watchers of Britain’s bailed-out financial institutions: this time two years ago, the City was fixated on the possible timing of the first disposal of government shares in Lloyds Banking Group.


Throughout August 2013, speculation about a sale lingered. It took until mid-September for the announcement to be made. It popped up on dealers’ screens around the City at 4.45pm – just minutes after the stock market closed – to declare that investors would be asked to buy shares overnight in what is known as an “accelerated book build”. By 7am the next day, 6% of the bank’s shares had been sold.

Two years on, the City is playing the same waiting game for RBS. In an echo of what happened with Lloyds, last week’s half-year results from RBS clear the decks for a share sale. RBS certainly puffed up its legal disclosures, with lots more information about potential penalties for the way it sold mortgage bonds in the US before the crisis, as well as warnings about an investigation into is treatment of distressed businesses in the UK. And then it tempered expectations of when it can pay a dividend: no chance in 2016, first quarter of 2017 at the earliest. This is the type of information that prospective City investors need before they decide whether to buy shares.

George Osborne may well try to entice investors to gobble up a few this week, before pension fund managers embark on their annual summer getaway. That would be a relief to Hampton, who bows out at the start of September after a gruelling stint in one of the highest-profile roles in present-day corporate life. But really, the chancellor ought to wait. Taxpayers have owned the stake for nearly seven years. What’s the hurry?

[speedy] 02/8/2015 10:23

NO NO No No no no no
Ok, maybe just the tip



"The Eurogroup welcomes the very constructive approach taken by the non-euro area EU Member States. The Eurogroup commits to ensure proper transparency and to strengthen cooperation with the non-euro area EU Member States. The Eurogroup confirms that all matters of general application, including the EU budget and the EFSM, are to be discussed and decided upon in the Council involving all Member States."

Are all you Europhiles happy, really, really, happy to bail out Greek banks, French Banks and German banks?

[gcom2] 31/7/2015 19:21

Yanks will hold the threat of legal action against uk banks until the chilcott report is edited sufficiently to their satisfaction before release. It's a game of poker.

[avatar333] 31/7/2015 16:06

Just need plenty of rain at Trent Bridge and The Oval now.

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[tfergi] 31/7/2015 13:33

They really do need some certainty and closure on these poxy litigations

[tfergi] 31/7/2015 13:24

Surfy we are hoping that earning increases help ease this burden also arnt we.... (Hope!!)

[smurfy2001] 31/7/2015 12:42

I've used a Guardian article about future litigation to 2016 for 4 banks of £19bn so roughly £5bn for RBS.



I've also used £10bn as a potential worst case (again from the Guardian).



What l need to do is look at the MBS litigation for other banks as that's apparently the big one for RBS in future and plug that in.

So 15.3% is expected year end assuming CFG is disposed off. You can see why RBS are doing this given future litigation potential.

[smurfy2001] 31/7/2015 12:12

I've given investor relations a call about the CET1 ratio hopefully they will give me some further information.

[leedskier] 31/7/2015 11:28

England are a bit too relaxed this morning.If Australia build up a decent lead, they could still cause a major upset.

[smurfy2001] 31/7/2015 10:36

Let's hope China ban HFT trading.

China’s securities watchdog is investigating the impact of automated trading on share markets, as authorities step up a crackdown on what they regard as heavy speculative selling that could destabilise the world’s second-largest economy.

“The CSRC is only targeting those who use program trading to frequently submit and then cancel bids, thus disturbing the market and manipulating prices,” he said. “Such a practice is closely watched by regulators in the US as well.”

[begorrah88] 31/7/2015 10:16

It's therapeutic Avatar - a bit like discussing the bad weather when we have it.

I do actually question the merit of the UK indices opening at 8am when they take direction from the previous DOW's close and respond immediately to the DOW's intended opening.

Be better to just open the same hours as the yanks or just be a DOW tracker as that is what the FTSE has become [apart from when the DOW rises, obviously, then it is a Eurobor tracker or whichever index is struggling the most].

[leedskier] 31/7/2015 10:09

At least we have the cricket to look forward to.

[avatar333] 31/7/2015 09:58

I'm not quite sure why you put yourself through it every morning, begorrah88.

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[leedskier] 31/7/2015 09:57

London listed shares are not merely taking a summer holiday but a sabbatical.

[begorrah88] 31/7/2015 09:42

Took the FTSE over an hour today to find red again.

We also need to be braced for the 'run to red' when the yanks open again - just like most days.

[cfc1] 31/7/2015 09:26

I might just keep buying RBS at these levels when I get more funds and think it might give better returns over next 2 years than buying a buy/let flat???!!!

[cfc1] 31/7/2015 09:25

smurfs, good stuff! I think there is also some talk behind the scenes turning some heat on the regulators who apparently are not letting our banks ever recover....that's what the GLG bloke was saying.
Any gym time.....
chat later..

[smurfy2001] 31/7/2015 09:17

Cfc1,

RBS will have too much capital end of the year, over %15 cet1.

This was disclosed in the presentation yesterday on the assumption citizens bank is sold year end.

Now the target is %13 so anything in excess could be returned to shareholders or used to buy back shares.

What l need to find out is what %2 equates to. You can then guesstimate the litigation costs and see if the %13 target remains. That is the board target before dividends can be paid.

[cfc1] 31/7/2015 09:11

hmmm smurfy, yeah probably. There divi is pathetic and I still think RBS is a better buy. Maybe its best to just buy and ignore/forget its a long term hold....valuations for RBS vs Lloyds (according to an expert on CNBC just now) is 50% ...he tips RBS over Lloyds. OK its long term but that's his view. Henry Dixon fund manager at glg.

[smurfy2001] 31/7/2015 09:05

Cfc1, the press are not reporting the obvious because no doubt they don't want to upset the share sale program ;)