Royal Bank Of Scotland Share Discussion Threads

[leedskier] 27/2/2017 06:18

David Buik
‏@truemagic68


European opening update courtesy of CMC MARKETS - FTSE100 +32 at 7,275, DAX +34 at 11,838, CAC40 +20 at 4,865 at 6.10am

[smurfy2001] 26/2/2017 20:16

RBS is a much safer bank now thanks to Ross McEwan, says Geoff Ho

RBS is close to profitability, but it may take years more to hit the Government’s 502p target price or for the bank to build up enough cash to buy the taxpayer out because of its legacy issues.

[smurfy2001] 26/2/2017 20:16

Stop agonising over the likes of RBS and Lloyds - just sell-up: SIMON WATKINS on the banks burdening taxpayers

[gcom2] 24/2/2017 16:41

well at least the 750m is now set aside.

[polar fox] 24/2/2017 15:37

I don't know if we are already aware of this, but it looks like the W & G proposition is going to drag on for a significant time. I've lifted the following from the FT:

Ewen Stevenson, RBS chief financial officer, said support from the European Commission was likely to come after the fourth quarter, which would then be followed by a “lengthy renegotiation of the state aid agreement”.

Mr McEwan said “there will be the number of SME customers that need to move across and that will be part of the consultation process.”

Unquote

I interpret that to mean calendar 2018 and then some. Perhaps there could be some risk too, of folk getting angry with one another as the Brexit negotiations unfold???

[sux_2bu] 24/2/2017 12:59

This old dog might present a bounce at the start of March. Presumably 2017, you never know. Lots of dry powder waiting.. .likewise Lloyd's.TLW, has a long way to fall too.Happy days.

[leedskier] 24/2/2017 12:56

Talking of the French Presidential election, Le Pen and Macron seem to be currently leading the polls to win the first round, which would mean that neither the Republican nor the Socialist party candidates would feature in the final run off.

Macron is tipped to win the run off by some distance, gathering support from the middle and left wing there. He was a former member of the French Socialist party, so after all the noise there, there could in reality be little change in policy between the present Government and his.

[eisler] 24/2/2017 12:47

This dog will still be losing money in 5 years - what a pile

[tfergi] 24/2/2017 12:47

Smurf I have saying next year will be better for 5 years lol

[leedskier] 24/2/2017 12:18

Look it is beta. The FTSE100 is selling off on this the last day of the trading week.

There is a view that earnings this year across the board will be weaker than in recent years.

If so the index is trading at the top.

When that happens volatility is the norm.

The markets may retrace ahead of the French elections.

To offset that commodity prices are recovering.

[smurfy2001] 24/2/2017 12:12

Come back in 2018 l guess.

;)

[tfergi] 24/2/2017 11:56

Down she goes.... boring same old

[chinese investor] 24/2/2017 11:39

The bank’s handling of a shareholder lawsuit over its £12bn rights issue in 2008, could and should have been settled earlier.

Most institutional investors have now been bought off, but a trial is due to start within a matter of weeks, because the bank has yet to conclude a deal to with small shareholders, racking up yet more costs.

That trial could yet wake some sleeping dogs.

RBS really doesn't want that to happen.

[avatar333] 24/2/2017 10:58

Good old cfc1.

;

[leedskier] 24/2/2017 10:45

58bn.

OK suppose you invested £100k in RBS shares when the share price was exactly twice the current share price, on a mark to market basis you have lost 50k.

Now suppose that I am a bank and I lent you the 100k which falls due for repayment today, and now you can only repay 50K. I the bank has lost the 50K.

RBS has a book of some 2.3 trllion. It would not take a large percentage fall in the value of that to create the loss of 58m.

[pal44] 24/2/2017 10:32

Leeds So where has the £52bn actually gone ? someone must be in a new house with flash car and Wife .. lol

[smurfy2001] 24/2/2017 10:29

Barclays mocked RBS by suggesting the recovery would take longer due to Brexit! That's the sort of excuse you will hear from the RBS CEO.

[gcom2] 24/2/2017 10:14

Mcewan delayed the RBS recovery by 3 years. get rid of him.

[leedskier] 24/2/2017 10:10

Someone has done the sums ...

found in the Guardian

RBS losses reach £58bn since the bailout.

[leedskier] 24/2/2017 10:06

Forex is being used as the instrument of volatility yet again ... all the b*llocks about European politics has not stopped the £ falling against the € in the last hour.

Lifting the $ knocks spots off commodity prices, commodity shares fall, the index falls and banks being beta fall too.

[smurfy2001] 24/2/2017 09:57

I'm surprised the CEO has not been fired he could have handled W&G better. Legacy should have dealt with by now but it's still dragging on.

At least he'll get a nice bonus for another large loss. Congrats l guess??

[loganair] 24/2/2017 09:56

By Naeem Aslam - There are still too many overhangs and we are not out of woods yet. The issue with the department of justice is still not clear and until this is fully put to bed, we think the bank may not find the most favourable position among its peers. We need to see the bank to start to paying a dividend and this is what investors are looking for. It appears the bank is on the path to recovery, but we think it will be still another few year before they will be any kind of dividend.



Laith Khalaf, Senior Analyst at Hargreaves Lansdown, commented: "The botched Williams & Glyn separation has also been a costly embarrassment for RBS, which spent £700 million in 2016 to spin off the bank, on top of £750 million to fund the new plan, which totally dispenses with the need to hive off Williams & Glyn. Assuming the plan goes ahead, RBS faces further restructuring costs to re-integrate the bank it has been trying to separate from for such a long time.

"RBS is of course still three quarters owned by the government, and that will remain the case for the foreseeable future, seeing as the share price needs to double for the taxpayer to break even.

"The bank is certainly making progress, though it has been severely hampered by mopping up the mess left by the financial crisis. There is every reason to believe RBS can be a profitable bank, returned to private hands, the question is how long it will take to get there."



Shore Capital said today there remains plenty more work before dividend payments can recommence and the UK government can begin selling down its remaining 72% stake.

On the group's results, the broker said: "Most notably, management expects it to be another year in which the group incurs significant one-off charges, but anticipates the group will return to statutory profitability in 2018."

ShoreCap added that it believes the bank's target for a return on tangible equity is achievable but said "we hesitate to put too much store on such long-term targets given the bank’s (and industry’s) track record of disappointing on return targets".

[loganair] 24/2/2017 09:47

Richard Hunter, head of research at Wilson King Investment Management, says RBS "remains the 'jam tomorrow' bank after revealing another set of ugly numbers which underline the scale of the issues it continues to face".

He says the resumption of a dividend is some way off and the government's 72% stake "continues to cast a long shadow" amid wider challenges to the entire banking sector, such as record low interest rates.

He concludes RBS "is very much a work in progress after nearly a decade of difficulty".