Royal Bank Of Scotland Share Discussion Threads

[polar fox] 10/5/2018 21:08

The Times:

Ross McEwan, chief executive of RBS, said that the bank would begin talks with the Bank of England in the next couple of months about the resumption of dividend payments, hours after the lender reached a provisional deal with the US Department of Justice (DoJ) over sales of residential mortgage-backed securities.

unquote

They should have time, before 3 August, to decide on an interim, or not.

[smurfy2001] 10/5/2018 21:08

The bank has enough shock-absorbing capital to start paying some of those profits out in dividends, which will make the bank easier to sell back to the private sector, which is helpful as the government owns over £20bn worth of shares.

That is a colossal amount to sell and will take several years. The first sales will be at a loss, but the government will hope that over time, as the huge overhang of shares to sell dwindles and profits continue to rise, the public may get more money back.



The public though are unlikely to ever recoup the £45bn poured into the biggest banking debacle in UK corporate history.

[smurfy2001] 10/5/2018 20:51

RBS boss on the bank's multi-billion pound settlement

[barmiddleton] 10/5/2018 18:01

A very good summary CI and I agree, the shares may well be a good "buy" in the near future now that their fine from the DoJ is determined. I think the Government sale will be done bit by bit over a period of years (at least two, imo) so don't see it having a major effect on the share price. Assuming the Bank is now back to full profitability and will now go full steam ahead on that front I can see the share price continuing to rise steadily, if slowly. Especially once the Bank start to pay a dividend again. I'll be keeping a close eye on developments!

[chinese investor] 10/5/2018 16:57

"Somewhere deep in RBS there's a decent bank trying to get out.

Stripping the bank back to a few core businesses has proven time-consuming and expensive.

But the end is finally in sight.

The troublesome capital resolution 'bad-bank' has been wrapped up, freeing reserves and bolstering the bank's capitalisation.

Costs are coming down, and loans to customers continue to grow.

Record low interest rates and a competitive mortgage market are hampering net interest margins (the difference between what the bank pays out on deposits and charges on loans), but also means bad debts have stayed low.

After 9 years of losses the bank proved profitable last year (unexpectedly).

Meanwhile the agreement with the Department of Justice (DoJ) means RBS' historic misdemeanours have now largely been put to bed, and the bank can set its sights firmly on the future.

Unfortunately that future will also involve the government unwinding its 70% shareholding in the bank.

It's difficult to see how all those sell orders won't weigh on the share price - although with an average purchase price of just over £5 a share compared to a current share price of £2.88, the government may choose to hold off on sales for a while.

The good news is capital generation looks healthy.

Despite the fine the CET1 ratio is comfortably above target, and it'll be interesting to see what management choose to do with the spare cash.

A return to shareholders would be welcome, and looks more likely now the bank knows exactly how painful the DoJ fine will be.

Getting RBS back on the right path is a marathon task.

The bank has run the first half surprisingly well, it remains to be seen if it's got the legs for a sprint finish."

[tradejunkie2] 10/5/2018 15:19

I've placed a limit sell at 502 wish me luck!

Right time for a dump.

[leedskier] 10/5/2018 15:09

502p according to this 2017 FT article.

[smurfy2001] 10/5/2018 13:56

Blaming it on "the Beast"

Can't wait until Carney is gone.

[leedskier] 10/5/2018 13:47

Interest rates unchanged and growth forecasts cut from 1.8% to 1.4% this year, will not be helping the banking sector.

[smurfy2001] 10/5/2018 13:20

Shrugs shoulders "settlement in principle"

[cfc1] 10/5/2018 13:14

what am I missing ? only up 8p!!!! after a great DoJ settlement!

[smurfy2001] 10/5/2018 13:01

Forecast dividend announcement matching or exceeding 5.41p would be greatly appreciated. It would encourage funds to invest here.

[smurfy2001] 10/5/2018 12:14

Disappointing but expected given recent inflation and GDP growth (or lack of)

No news from the alphaville boys on RBS.

[leedskier] 10/5/2018 12:01

BoE no change in interest rates Sterling falls.

[blusteradjuster] 10/5/2018 11:50

An aggressive, US tech-titan style buyback would definitely appear wise.


This being a political football, wisdom probably won’t feature.

[raffles the gentleman thug] 10/5/2018 11:19

With Risk Weighted Assets of £202.7bn and a proforma CET1 ratio of 15.1%, and a capital need of 14.0% RBS is currently £2,230bn over capitalised or about 19p per share. And obviously that increases as they retain earnings this year and continue to reduce RWAs

[smurfy2001] 10/5/2018 10:52

From the call.

- RBS could do buy backs on AGM approval it seems.

- Several years of dilution (coupons on capital security) will continue until PRA approval to return capital.

@gcom2 - a 1p (old money) move is indeed disappointing.

[smurfy2001] 10/5/2018 10:50

Conference call with Management
Replay dial in:

[phone]

Conf. ID:

8162406

[gcom2] 10/5/2018 10:10

So 3.6 bn isnt that drastically lower than 9 to 12bn predictions mate by many.why still 28p then.

[smurfy2001] 10/5/2018 08:39

300p please.

[leedskier] 10/5/2018 08:37

At mid day the BoE reveals its near term monetary policy.

[leedskier] 10/5/2018 08:36

There is a UK data print at 9.30am

Manufacturing, Construction, Industrial etc

[smurfy2001] 10/5/2018 08:14

RBS agrees £3.6bn US settlement in ‘milestone’ deal

RBS said 3.46 billion US dollars (£2.5 billion) of the proposed civil settlement will be covered by existing provisions and the bank will take a 1.44 billion US dollar (£1.1 billion) hit in its second quarter results.

[smurfy2001] 10/5/2018 08:12

RBS bank agrees $4.9bn civil penalty to end US probe

RBS boss Ross McEwan said the agreement in principle with the US Justice Department (DoJ) was "a milestone".

The probe focused on the sale of financial products including toxic mortgage bonds from 2005 to 2007.

The government is now expected to start selling its 71% stake in the bank.

Chancellor Philip Hammond said last year that he was reluctant to sell shares while the DoJ probe had still to be resolved.