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They deserve to be last place as well.... They have been screwing investors for years! 10 years after being bailed out the share price is still half the bailout price... 260p is my get out even and thats my plan... The big banks were only massively profitable through ripping off customers anyway
Fingers crossed this is the tip of a deluge of shareholder returns with divi and buybacks. My next top up point will be low 230's if it gets there, although I may hold off until Oct to see if hard Brexit is a likely outcome.
In accordance with its intention announced on 3 August 2018, the RBS Group today declares an interim ordinary dividend of 2 pence per share.
The dividend shall be paid on 12 October 2018 to shareholders on the register at the close of business on 24 August 2018. The ex-dividend date will be 23 August 2018.
In a cartel-ised market where it is characteristic for large numbers of customers to stick with their choice of provider for extended periods regardless of paltry interest rates, and the growing importance of online banking, does a customer satisfaction survey really affect the sp?
Britain's first mandatory sector-wide customer survey to help people choose the best bank has seen RBS putting in a sterling performance and making it to joint last (15th) ! Surprised RBS were not completely at bottom of pile. On a brighter note, Natwest were joint 9th.
i think the storm is over from fred the shred?and markets today not been the best ? this government handling of Brexit is causing a lot of uncertainty and giving people the miss information that does this.summer is nearly over lets see what winter brings on sales.
Do not worry. Wait for end of October 2018. RBS 3rd quarter result is to come on 26th Oct 2018 and I feel it would be above expectation. After 26th Oct 2018, you would not see RBS sp below 300 ever, most likely, sp would be above 350 by end of this year.
bounced off 240's but looks like it could test it again. Most stocks ATM are looking red as far as I can tell.
Nobody want any of this piece of shlt
According to Deutsche Bank’s analysts: “In aggregate we forecast £11.2bn of capital distribution from 2019-2021, 37% of current market cap which could be executed via a combination of directed buybacks or special dividends. RBS's capital position (16.1%) is already well above requirements, and should continue to climb.”
So, if Deutsche Banks is right than RBS would dish out £11.2 bn by 2011. From here, it can be seen that RBS has enough capital to buy a large chunk of Shares back from government. Obviously, that would increase their profit per share as presently, shares are trading at huge discount. I think if RBS would do that, buy government shares directly, than it would be cheaper for government to sell, plus there would be positive effect on RBS business and profitability (per share).
Interesting note from UBS on Friday which mentions Buybacks and risks of Brexit.
Brexit bit is scaremongering IMO :
"RBS shares rise as it looks to pay first dividend since financial crisis, posts first half profit
A US$4.9bn settlement with the US Department of Justice (DoJ) over the sale of mortgage-backed securities in the run-up to the financial crisis, marked the last of the bank’s major legacy issues and paved the way for the resumption of dividends.
RBS recommended an interim dividend of 2p as it reported an attributable profit of £888mln for the six months ended June 30, down from £939mln last year, with the decline reflecting its settlement with the DoJ.
“The first dividend in a decade didn't dent the balance sheet either: significant special dividends or buybacks – perhaps direct from government – are needed to stop this undervalued surplus capital from growing further,” UBS said.
“We think earnings and excess capital are undervalued at a buyback-adjusted medium term price-earnings of 6-7x; upgrade to Buy.”
UBS expects higher dividend yield, share buybacks
RBS is targeting earnings per share (EPS) of 34p in 2020 and while UBS is “more cautious” with its estimate of 28p, it expects £5bn in share buybacks to the end of 2021 to take the stock to 6.5 times earnings.
UBS estimates a dividend yield of 3.4% in 2018, rising to 5.0% in 2020, along with buybacks and special dividends to reduce overcapitalisation.
In 2019, UBS expects RBS to ask shareholders for approval to repurchase stock direct from the UK government, reducing the overhang, increasing index weights and delivering EPS accretion.
The government sold 925mln of its shares in RBS in June, reducing its stake to 62.4% from 70.1%.
Risk of no-deal Brexit
With any company, there are of course risks, and a no-deal Brexit scenario is a major one facing RBS.
“If negotiations fail we would expect pressure from margins (Bank of England to cut rates and restart quantitative easing), loan losses (lower house prices, weaker macro-economic assumptions under IFRS 9) and higher risk-weighted assets density,” UBS said.
“We don't kid ourselves that discounted valuations would provide protection. But a no-deal Brexit is also not our base case given significant apparent risks to financial stability for both sides of the negotiating table: we see room for UK domestic bank exposure in any portfolio.”
The sp isn't really falling, just hovering within a range, which has been characteristic of this share for a while. Given the general improvement of fundamentals over the last few quarters, the vector of the sp should be positive over time.
I cant beleive this is falling... Did nobody hear there is a 2p divi lol
RBS stated that was their intention (at least some of the govts shares next time they offload).... however I never heard any response from the govt, so it's unclear of their willingness to cooperate
I'm sure I read somewhere that RBS have offered to buy back the shares (and hopefully delete them) to boost our sp.
Its throwing out cash at the rate of £5 billion pre tax. Can buy back its own shares from Govt ?
Yes im absolutely buzzing for my 380 quid divi lol.
I'd say with interest rates set to rise significantly over the next 2 years along with higher dividends that this share is a good one for a medium to long term bet.
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