Thanks mailman. I agree a lot of uncertainty and osorio said that the cost to separate tab was a 1 billion more than the business was worth when sold. So I expect the same with W&G but it is necessary and sadly this bank will be on its knees for at least another 18 months before things change with that cost hanging over its neck with other charges. I still feel the bank will become good in 2018 once charges go, diversification happens and more than likely there is movement on interest rates. I am gutted took a 5 year fixed on my mortgage in October when there was talk of them going up 2016. 2 year would of been perfect now with hindsight haha.
Good post .. Like all of us just predicting .. Me included .. We have the Europe vote, oil may rise even higher, and as you say interest rates may increase later this year...
Full time good paying employment maybe reducing as part time and Zero hours are reported growing .. And the pressure on retail shops seems to grow more from the Internet sales and shops trying to price match Internet prices.
Terrorism and the Mass unprecedented amount of movement of millions of people into Europe, will in the coming 5 years is surely bound to have some impact. The cost of getting them all settled with housing, jobs, medication needs and of course they will increase the population even more as their the families grow.. Such an influx of different cultures and religions do not always mix as we all we know by what goes on in the world now..
Meanwhile hopefully things and the coming changes will turn out to be a positive and RBS and the UK economy move to better times .. As you say the long wait has a long way to go yet.. Hope 300 is achieved by this years end..
I personally don't think the share price will start rising significantly until back end of 2017. As it needs to diversify the Williams and glyn part of the bank. It was initially planned at start 2017 but been pushed back slightly. This then comes in line with 2018 when hopefully PPI will finally stop. So quarter 4 of 2017 to summer 2018 will be when the bank starts movings until then I don't think it will go much above 300. Unless there is changes interest rates in the mean time but again I wouldn't expect that probably till inflation increases so again summer of 2017 at the earliest for that. So I think the share price will stagnate for the next 12 months.
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