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It is possible that instead of government selling RBS shares in market, RBS itself buys 5 percent shares from government every year, thus buying out all government held shares in next 10 years. This share purchase can be from money RBS could pay as dividend to share holders.
Government will sell again when sp is higher, like above 270p. So we'd fall back to 245p again. No way this will go to 200p!
'bought low' ? Good luck with that. If next gov sale is at 4% discount to mkt price and then followed by a further 8% decline thereafter - this would imply you have not 'bought low' at all. Last gov sale was for 7% meaning there are about 7 more gov sales to go … Extrapolating the falls encountered by the last sale - that implies sp of about less than 200 before gov sales complete.
That's history get over it. RBS paying diviis ,ppi coming to a close & interest rate on the way up bought low & now waiting for the ride to begin
Rbs is the biggest polished terd ever to grace the ftse 100.... The share price is still basically 25p after being bailed out nearly a decade ago... Any other business would have been left to fold but a uk bank folding would have ruined the uk ecomonomy.... Fred goodwin should be hung for what he did.
From today's Telegraph - not good for RBS sentiment. Interesting insight on government sell off. Not sure how they will get the next sale right ...
"RBS sell-off may be slowed if share sale flops again, warn analysts
Investors who took part in the first Government sale of RBS stock in three years earlier this summer would lose around £125m on their £2.5bn outlay if they were to sell today. The City is nervously awaiting a further sale of the taxpayers’ remaining 62.4pc stake in the bank, after a poor outing last time round in June. RBS cheered fund managers on Friday when it announced its first dividend in a decade since its £45bn bailout at the height of the financial crisis. It unveiled a 2p interim dividend after a quarter of solid profits.
However, industry sources warned that a second underwhelming sale of government stock could slow the privatisation of RBS. “If they want to privatise it quickly they need to get the next one right,” one senior investor said.
The last sale saw the Treasury offload a 7.7pc chunk of the state-controlled lender, at a price of 271p a share, for £2.5bn. This was 10p lower than the previous day’s closing price of 281p, and the stock fell a further 15p on the day to 266p. RBS shares have fallen further since the sale, despite a 3pc rally on Friday following the dividend news.
The stock finished last week at 258p, which is 5pc down on the 271p level new investors bought in at in June. That would translate to a £125m loss on the £2.5bn of shares bought. Commenting on June’s share sale after the bank’s half-year results on Friday, RBS chief executive Ross McEwan blamed market volatility for the fall. He said: “They sold £2.5bn worth of stock which is a huge undertaking. I think what then happened afterwards – you saw some quite dramatic changes in the marketplace which brought the stock down. “But £2.5bn is no small amount to get out into the marketplace, it took a while to absorb it. “Let’s see what the Government do next, they’ve now got a business that has the intention to pay a dividend which should be helpful and it’s in their hands as to when they sell the next tranche.” Mr McEwan said the bank hoped to quickly build the dividend over time to around 40pc of earnings, but warned that a chaotic Brexit could slow the process down. “We need to take a look at that before making major capital distributions,” he said. UK Government Investments – which manages the Treasury’s RBS stake – was unavailable for comment.
Glendo you could but wouldn't do you much good.... the SP value drops by the value of the dividend on ex divi day
shale - where did you get the dividend dates from ? Thought dividend was waiting on US DOJ settlement and that dates were yet to be announced. Would be happy to be proven wrong ...
They reckon out of all the U.K. banks they are in a better position than most to weather the Brexit storm with their cash reserves. Time to top up me thinks.
Thank you Shale2020. Does this mean you could buy the shares on the 22nd and sell on the 24th and qualify. In theory. Asking for a friend... 😉
Hit my average price today. Still think this is a great price. Must rerate to 300p+ soon.
You must hold the shares on 23rd August. Payment will be made on 19th October.
Forgive my noob-ness but what are the rules for qualifying for this dividend?
Confirmed good luck it's the start of the long recovery road back here from now on :-)
Time to go to the shops and buy the sweets ... 2x 1p mojo sweets thanks RBS
Analysts are expecting dividend announcement in results on Friday (2p predicted in this article)...
http://www.thisismoney.co.uk/money/markets/article-6002857/RBS-set-pay-dividend-crash.html
They will continue to compensate customers but the amount they have allocated and expect to pay is surprisingly small.
My understanding is they still have to compensate customers affected, just that FCA won't be chasing further punitive action
RBS have got away with it ...
Reuters today - 'Britain's markets watchdog said it will take no enforcement action against Royal Bank of Scotland over alleged mistreatment of its small business customers in the wake of the financial crisis'.
Fool not convinced ...
The City thinks this will begin with a 7.7p per share dividend in 2018, a figure that yields a chunky 3.7%. And the dial moves to 6% as a full year of expected payouts nudges the annual total to 14.8p.
However, investors remain cautious as to whether RBS will be able to meet these estimates. Dividends appear to be closer now than at any point since the financial crisis, but the company’s wafer-thin balance sheet and murky revenues outlook amidst a slowing domestic economy could see these projections fall flat.
Police, FCA and bank all investigating GRG … from the Times
Allegations that a former Royal Bank of Scotland manager solicited bribes from small business owners in return for showing leniency towards their troubled companies are being investigated by police, The Times can reveal.
A former banker from RBS’s notorious Global Restructuring Group is alleged to have demanded tens of thousands of pounds in cash from customers in return for forbearance on their debts.
The allegations, which are subject to a criminal investigation by Police Scotland as well as an internal inquiry at the bank, exacerbate the scandal at GRG. The claims go far beyond the sharp practice and unethical behaviour the bank has already apologised for and no individual has yet been prosecuted for the actions of the division.
Next week the FCA is expected to announce whether senior RBS staff or the bank itself will face enforcement action over the GRG scandal.
A mandatory single basic savings rate paying a fair rate of interest for all longstanding customers could also be beneficial for the banks in terms of customer retention levels and account switching, saving the banks costly administration charges.
Difficult to believe FCA has come up with such a stupid idea ...
FCA has suggested a basic savings rate for cash savings accounts, as it noted concerns that savers who stick to the same bank or building society get poor returns on their money. Beauchamp said this would "doubtless hurt revenue at a time of (almost) record low interest rates".
Berenburg Bank are a privately owned bank who primarily operate in niche banking operations and are now skewed towards investment banking and capital market transactions, and are still very much on a steep learning curve when it comes to valuation and analysing UK retail banking business models.
Hopefully. May sell up is I see 270s though.