Saturday 19 August 2017 The one stop source for free breaking news, expert analysis, and videos on AIM and LSE listed shares

You Might Want to Take the High Road to that Scottish Bank Again

By Malcolm Stacey | Friday 3 March 2017

Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

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.

A limit has just been set on the time people can go on claiming PPI from the banks which have paid out a staggering £26 billion so far. This will end a huge burden on banks, who’ve been setting aside more billions for future pay-outs.

My favourite bank to invest in is probably Lloyds (LLOY). It pays a dividend and is increasing profits impressively. Its performance shines in comparison to the poor figures offered by the Honkers Bonkers bank (HSBA) recently.

But I don’t want to overlook Royal Bank of Scotland (RBS). It suddenly looks more promising as an investment since it now plans to keep hold of Williams & Glyn, even if the main reason is possibly that nobody else wants it.

RBS faces a big settlement with the USA’s Department of Justice over mis-selling allegations of so long ago. But RBS is still a monster outfit and the settlement will not cause the bank to reel in terminal pain - far from it.

Consequently, RBS’s share price has been ticking up steadily and is now around 245p. A big German broker - Berenberg - has looked at the situation and reckons the share is worth nearer 285p, setting a target of 275p.

There is also a possibility that dividends may be paid again. On these being announced, expect the share price to jump smartly.

The bank is undergoing a big cost cutting exercise. And when the bank rate finally goes up, which is going to happen some time as inflation rises, then profits should thrive again.

And now it’s over to the Punter’s Return.

Filed under:

Never miss a story.

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

More on RBS


Comments are turned off for this article.

Site by Everywhen