Royal Bank Of Scotland Share Discussion Threads

[leedskier] 23/2/2018 15:59

It is a dividend. No more no less.

[tfergi] 23/2/2018 15:49

I can't remember where I read it but it basically summarised the past 5 years index performances.The FTSE lags massively behind practically exert other major index.Yet it tumbles in line with their falls and lags behaving their gains.The FTSE for me is undervalued

[polar fox] 23/2/2018 15:32

smurfy,

Are you concerned we may have a H&S forming on the chart and, depending on where the neckline comes to be drawn, a target around last year's 240p pivot point could look about right?

[smurfy2001] 23/2/2018 15:14

Cfc1, feel yer frustration this has basically gone nowhere

[leedskier] 23/2/2018 14:47

The USA is off to the races again, and the FTSE?


Down again!

[maxk] 23/2/2018 12:55

ok, go on then.

[leedskier] 23/2/2018 12:40

maxk we are having a day off from politics today to focus on RBS.

[leedskier] 23/2/2018 12:33

Thanks for that smurfy.

Tangible Book Value Per Share is 292p

[smurfy2001] 23/2/2018 11:43

FT Alphaville.



Royal Bank of Scotland Group PLC (RBS:LSE): Last: 269.20, down 12.8 (-4.54%), High: 274.00, Low: 268.70, Volume: 9.11m
11:08 am
BE
Costs were 2% higher than consensus

11:08 am
BE
And we get an accelerated transformation plan, whatever that means.

11:09 am
BE
Well .... what it means is forecast cuts.

11:09 am
BE
RBC incoming.

11:09 am
BE
The company guides to a reduction in costs in 2018 but materially lower than the decline in 2017 (£800m in 2017 and
consensus expects £500m decline in 2018 and every £100m is 2% of consensus PBT). RBS has abandoned the £6.4bn 2020 cost target (reflected in consensus) but still targets a 50% cost to income ratio by 2020- implying higher costs than consensus but also higher revenue. RBS expects to take restructuring costs over the next 2 years of £2.5bn which is higher than the £1bn previous guidance and c.£1.1bn in consensus.

11:10 am
PM
It's been ten years. Maybe a good idea to accelerate things

11:10 am
BE
The rebuilding of RBS is a very, very long project. Far longer than it took to knock it down in the first place.

11:11 am
BE
(@Grouchmonkey: that sounds like IDS.)

11:11 am
BE
Goldman can bullet point the other stuff, which is more or less inline.

11:12 am
BE
Though still a mess.

11:12 am
BE
Operating trends: Adjusted PBT (excluding IFRS vol.) of £685mn, a touch below (3%) to company-compiled consensus, (£707mn) driven by higher provisions within the CMB (with the increase driven by a single name), partially offset by better costs.

11:13 am
BE
Capital: CET1 up 40 bp to 15.9 (vs 3Q17 at 15.5%), with the increase mainly driven by £10bn reduction in RWAs during the quarter. Consensus was at 14.7% as it assumed a much larger litigation charge (£2.2bn vs £764mn actual). Adjusting for this, we believe capital beat by 40-50 bps.

11:13 am
PM
(Sorry -- just been caught up in UBS's new fangled two-step verification thing. When did they bring that in?)

11:14 am
BE
Capital guidance: within the release, the group comments it expects to “maintain a CET1 ratio in excess of our 13% target” in the near to medium term. RBS cites a number of factors in relation to this including litigation and conduct, future potential pension contributions, RWA inflation (IFRS 16, Mortgage floors, Basel 3 and increased impairment volatility (IFRS 9). In addition the group also cites the collective impact of these items on its stress test results

11:14 am
BE
(Been there for a while. And, yes, irritating.)

11:14 am
BE
Non-ring-fenced bank: in Natwest Markets Plc (the group’s future
non-ring-fenced bank) RBS is targeting an end-state CET1 ratio of 14% and aleverage ratio “greater than 4%”. Natwest Markets Plc is expected to contain c.£50bn of RWAs and a funded asset base of c.£120bn.

11:14 am
BE
TBVPS down 2% to 292p (vs 3Q17 at 299p), mainly driven by litigation charges.

11:15 am
BE
The hell is TBVPS? Is it like TNAV?

11:15 am
PM
Ive no idea

11:15 am
BE
US RMBS: The group has increased its provision by £0.5bn but provided no incremental information on stage of discussions

11:15 am
BE
Outlook: (i) Additional £1.5bn restructuring costs for 2018-2019, (ii) discontinued absolute cost target of £6.4bn (statutory) in 2020 whilst it retained its 50% C/I target, implying slightly improved outlook on revenues.

11:16 am
PM
(Actually, i have: Tangible Book Value Per Share)

11:16 am
BE
(Ah.)

11:16 am
BE
Anyway, exciting huh? And the good news is that we're at the end of bank reporting season I think.

11:16 am
BE
So we can forget about them for another three months.

[maxk] 23/2/2018 11:26

Path to any post-Brexit customs union is closed, says Hunt



Government’s hard Brexit stance following all-day talks at Chequers sets up potential Commons defeat



Kevin Rawlinson

Fri 23 Feb 2018 10.51 GMT

[raffles the gentleman thug] 23/2/2018 11:16

So that 14.5p swing between share price performance and TNAV performance represents $2.4bn of value destruction on worries about the DoJ settlement

[raffles the gentleman thug] 23/2/2018 11:07

And it's hard to see the likes of brokers like Morgan Stanley remotely change their stance on the company give the good underlying earnings, increased provisioning and good outlook. So nothing changed other than we are three months down the road and despite incremental litigation provisioning tangible net assets are up 2p and the share price is down 12.5p !!

[raffles the gentleman thug] 23/2/2018 11:04

I got lots of faith smurfy and this is a gross overreaction to a doj problem the market could have worried about at any moment over the last twelve months

[smurfy2001] 23/2/2018 10:53

Keep the faith. I have every confidence l will make a significant return here.

[leedskier] 23/2/2018 10:52

The Eurozone is enjoying growth with very low inflation, which I guess reduces the risk of an ECB pre-emptive rate rise.


10:00am EUR Final CPI y/y 1.3%.

[wantage] 23/2/2018 10:49

tfergi - open a spreadbet account with IG,Spreadex etc.If you're worried about having an open ended position you can use a guaranteed stop.You can short virtually any stock,currency,or commodity.

[tfergi] 23/2/2018 10:17

Same old RBS big fall on results.Been seeing this for years - would of made a fortune if I knew how to short it.Saying that the one time I do it they will probably fly....Might get on it :-)

[smurfy2001] 23/2/2018 09:47

Look at the Ulster Bank CET1

[smurfy2001] 23/2/2018 09:38

Well the webcast is certainly better then Barclays. Barclays had sound issues.

[raffles the gentleman thug] 23/2/2018 09:36

Best measure of opportunity ahead for this share is simple fact that their results came after £7.8bn of litigation and conduct provisioning or 66p a share last year - that doesn't go on forever

[smurfy2001] 23/2/2018 09:34

I guess McEwan will get drunk again this evening. Bet he can't wait to leave after DoJ is sorted.

[raffles the gentleman thug] 23/2/2018 09:19

Broadly agree with CMC markets other than the fact it's a better bank today than it was three months ago, and there's still an awful lot baked into the share price re DoJ settlement and underlying earnings are still north of 25p a share and growing

[gcom2] 23/2/2018 09:18

added a few 26.95p