Hello, Share Farmers. The big British banks have share prices stuck in the mud on roads which should be taking them north, but are not. And yet the compo paid out in PPI cases is nearly over. The deadline was on August 31st, 2019. Yes, that sparked off a huge number of last-minute claims, but many of those will be spurious anyway and the rest will soon be mopped up...
Back when I was a callow youth about to start my undergraduate studies, the ritual of opening my first bank account (until then a Post Office savings account was my sole financial product interaction) provided a wonderful social insight. If I recall correctly, all the cool, well-heeled kids had accounts open for them at Barclays (BARC) or Lloyds (LLOY) as a continuation of their parental banking allegiances. I just went for the bank that offered me the most money as a joining inducement...and that happened to be NatWest… I read today in the latest quarterly thoughts from Royal Bank of Scotland (RBS) that this tainted name - courtesy of largesse a decade plus ago by 'Fred the Shred' and others - will change back to NatWest Group later this year...
A few days ago I asked you to write an essay of no more than 150 words to answer a question from the Bath Spa University Banking & Finance course. A few of you tried as you can see here but I have good news and bad.
This should be easy, I invite you to answer the following question in fewer than 150 words. Bath Spa students need to find a safe space room if their human rights are breached by being asked to pen more than 150 words a term. The deadline for entries is Sunday at midnight and the best entry wins a bottle of Greek Hovel 2019 olive Oil. This question is sponsored by Ms Alison Rose of RBS.
The job of a bank boss is very simple. It is to lend money to folks who have a good chance of paying it back so that shareholders see a net return, the bank stays profitable and staff keep their jobs. It is not to change society. No doubt RBS boss Alison Rose will be praised for risking £1 billion on ultra-woke virtue signalling. MBE, Member of the House of Lords, it all looks more likely but this is folly.
RBS (RBS) has announced that after five and a half years of earning a basic salary of a million quid a year plus numerous bonuses, LTIPs etc, Ross McEwan has resigned from his role as Chief Executive Officer (CEO) and Executive Director. We are told that bankster fat cat Ross is on a 12 month notice period.
It is a good job that Royal Bank of Scotland (RBS) has started to pay a dividend (3.5p full year and a 7.5p special equating to 11p per share or c. a 4.5% yield) because my June love-up would have left any investors over the last eight or so months with basically no capital gain. I guess it could have been worse and today's full year 2018 numbers have shown some real year-on-year progress...
Hello Share Pushers. Another week's gone by. Another seven days in a very long, but rather slow bull market. Actually, the Footsie's performance recently has been poor, so should we see that as a sign of a ne w bear market? Must we change at least a few of our shares into cash? I would say ' yes' for the following reasons.
In pretty unsurprising news, overnight UK Government Investments - which manages the UK government's Royal Bank of Scotland (RBS) stake - announced that it had sold a 7.7% stake at around a 3% discount to Monday's closing price. This sale raises around £2.6 billion and reduces the government's holding from just over 70% to a mere 62.4%. I like RBS stock here as I wrote just over a month ago. The metrics are improving and the times are changing...and part of that change is the government progressively becoming a smaller and smaller shareholder.
It has been a couple of months since I wrote up my thoughts on UK banking bad boy Royal Bank of Scotland (RBS) HERE. The share has basically done nothing in the interim period but today's first quarter update continues the positive operational progress with income up a tad, the net interest margin flat, costs down and capital generation up. There was even a nod towards the scope for a dividend sooner rather than later and the general need for prudence in managing a UK-focused business currently. And the reaction of the shares? Down a couple of percent.
Picking shares should be easy, right? Find a company where both profits and cash flow generation are improving plus where investor sentiment is shot to bits and the Gods of both fundamental analysis and investor psychology should be on your side.
Hello Share Snackers. Once again, at the risk of irritating this website’s very good friend Wildrides, I turn to another British bank. Though it’s hated by many share shifters because of its ten year old wallow in the depths of despond, RBS (RBS) at last shows signs of a more permanent recovery.
Hello, Share Sippers. My Honkers Bonkers (HSBA) shares are rising nicely. But at much less than 800p, they are still way short of previous bests of 1200p. And that was so long ago that Shakespeare was still a lad.
Hello Share Smirkers. Normally I favour Lloyds (LLOY) when commending banks to your further inspection. But progress on that bank’s share price has been hesitant on days when its rival RBS (RBS) motors ahead. Though of late, RBS has weakened too - a casualty of the political uncertainty which becomes even more uncertain as the days roll by.
ShareSoc it is starting to serve up some opinions of worth. Its latest comment on the RBS scandal is bang on the money and shows why the UK Financial system is flawed and will screw we little people every time.
Hello Share Trundlers. It’s only with extreme caution that I commend any British banks to your eagle eye, having lost a stack of my own money on them even since 2007. But I am rather more hopeful about all of the big British ones now.
Corporate earnings season really sorts out the analytical geeks from the also-rans especially when it is ‘banks’ week. I sadly have been absent from writing pearls of wisdom on these pages recently as I have been up to my neck in global corporate disclosures and just the art of keeping up has taken up all of my time. Once however it is ‘banks week’ I know the end is nigh…because the UK large cap banks are among the last to pucker up their insights. We will generously muse that it is due to the complexity of their businesses and not inherent laziness…
Hello Share Wallowers. It’s all happening at the old Royal Bank of Scotland, now known boringly as RBS (RBS). It’s all about ownership of its smaller Williams and Glyn business. Spain’s Banco Santander was round the table with W and G, but then it pulled out, reportedly over differences about the price. But now the Glasgow bank Clydesdale (CYBG) may step in.
You can do a lot in 100 days. Back in April I was musing about the large UK banks and puckered up some ‘geek analysis’ on Lloyds (LLOY) which basically suggested a double digit trading opportunity was apparent…and so it came to pass over the next four to six week. A month or so later Brexit and the shares fell out of favour. Despite the grumblings in Lloyds statement last week I am getting similar feelings about an investing opportunity here again. What did I conclude last time?
Hello Share Screamers. I was going to sell my bulky haul of RBS (RBS) shares - until I saw the latest set of results. Of course, I should have sold them a few years ago when the price was around 500p. Now it’s around 220p. But I dare to think that things may improve now.
Hello Share Scrimpers. Here I go again - recommending a bank for your scrutiny. I sometimes wonder why I bother, as the big British banks have an eight-year-old habit of letting us down.
Hello Share Fans. As most shares seem to be falling these days most of the time, it’s probably not the time to bring you any red-hot tips. Even the best of companies wobble when the tide goes out.
Banking isn’t necessarily a sector that I’d be rushing to take positions in at the present time, given the state of the world economy, but Royal Bank of Scotland (RBS) still interests me at current levels.
Hello Share Twirlers. So George of the Treasury Jungle has decreed that its Royal Bank of Scotland (RBS) shares are to be sold off, probably at a loss to the tax-payer. You’ll recall that the shares have to go for about £5 each to recoup the money - that’s nearly £1.50p more than the present market price.
The Depression era US President Franklin Roosevelt is probably not often mentioned on this site but his dictum that ‘there is nothing to fear but fear itself’ is inadvertently one of the best pieces of stock market advice you are likely to read. Let’s consider this in respect of some of Britain’s best loved bank shares Royal Bank of Scotland (RBS) and Lloyds (LLOY).
Although it is evident that there have been and remain rather questionable fundamentals behind RBS (RBS), the shares have rather outperformed over the recent past. It would appear that the current position on the daily chart shows a stock which is struggling.
Hello Share Tweekers. I recently wrote about RBS (RBS), the old Royal Bank of Scotland, observing that the share price now is still only 4% of its previous high. That previous high was over £9 and was reached just before the bank crisis of 2007/8.
Hello Share Shapers. While composing an essay about RBS (RBS), I found myself writing that their shares are now only worth 4% of what they used to fetch before the great credit crunch of 2008.
Hello Share Scrunchers. I read in my paper that a woman who bent down to kiss her guide dog good night, and banged her bonce on a coffee table, can now see again. How's that for a rare good news story!
On Friday we had the preliminary interim results from the Royal Bank of Scotland (RBS.) Whereas one might have might have expected something slow and vaporous, they were instead robust and tangible enough to push the share price to rise not so much like the slowly rising ghost from the deep grave of its former self but more like a rocket on Guy Fawke's night. The numbers which lit the touch paper of the market’s hopes and best expectations were the reported figures for profits before tax and the operating profits during the first half.
The market greeted the Royal Bank of Scotland (RBS) profits warning bullishly pushing the share price upwards by 3.5% to finish the day at nearly 344p a share. What?
Hello Share Minders: There is classic advice always with us that we should not put all our eggs in one bucket. That a wide spread of different companies is safest.
Hello Share Shifters: Once again, the two British banks with huge chunks owed by the government are in a state of flux as far as share shifters are concerned.
Hello Share Misers: The two partly state-owned British banks, Lloyds Group (LLOY) and the old Royal Bank of Scotland, RBS (RBS) which includes that Nat West, are both zipping along happily so far this year.
Hello Share Magnates: There are some share people who only buy Footsie shares. They think that is safer. Except that it is not always safe.
Hello Share Twiddlers: There is a view among the more cautious investor that he or she should have about three quarters of their money in Footsie companies.
Hello Share Gang: When I was an investigative journalist with the BBC I looked into a lot of business issues very carefully. We had many letters from listeners about banks.
Hello Share Twiddlers: The British banks are a complete nuisance for armchair investors like us, aren't they? The share prices will just not get going – even though their value- when compared to pre-credit crunch days – are very low indeed.
Hello Share Fans: Sorry if I've mentioned it before, but I think that Lloyds Group (LLOY) might possibly do rather nicely out of the success of the Royal Mail fandango. So might the old Royal Bank of Scotland (RBS)
Apparently the City is up in arms over the “sacking” of RBS CEO Stephen Hester, as if he was some kind of Moses figure who will not be able to lead the zombie bank to the Promised Land of re-privatisation. However, given the way that the table has been tilted in favour of the sector in the UK, and the point in the cycle that Hester came into the job even Coco The Clown could have done as well or better.
One of the factors that contributed to the great British banking collapse of 2007-8 was lax regulation, something which is perfectly understandable if as a regulator you are dealing with your future employer.
The latest from the bank that did to banking what Fawlty Towers did to tourism in Torquay is that it has £20bn to lend to small business, but has no takers.
The share price of RBS (RBS) has headed due south since my bearish comments on the company last month. Reviewing the share in terms of its future dividend paying capacity in the light of recent history, I observed that in the different world and circumstance of 2007 ( when bank capital adequacy was seemingly almost inconsequential and some banks were running on low or dubious capital or both ) RBS had distributed only 30% of its earnings as dividends. That implied on a totally theoretical, best expectation 30% dividend payout from 36p of earnings per share, a dividend of 11..9p; translating into by way of academic exercise, into an annual yield of a mere 3.3%.
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