Really cant see a divi until US department of justice sets the fine. Reckon RBS should employ one of the FBI bosses who have recently been sacked, would catapult to them to the front of the litigation cases. Not a good idea really.
There also the fact most investment managers cannot invest in a company till it starts to pay a dividend. Once they are on board is will be easier for the government to sell the share. Which will help push up the price and make it easier for the government if done right to get the best return price.. Hopefully they learnt from LLOYDS sale, how best to do it. There also the fact because the government currently owns most of the share's the it will start to see a good return for the tax payer. Lowering the break even price at the same time.
can someone confirm what are the finally conditions for RBS to start paying dividends. Is it the government insurance scheme, W & G disposal , and American laws suits. Also what laws suit are outstanding. I know there one big one, but there a few smaller one's I believe but not sure who and how many. or if someone can find a link for me. I'VE tried to look but with no luck.
As a taxpayer, I am happy for HMG to recoup what it can from RBS. Without the government bailout the business would not have survived. As it stands, it seems that HMG will sell its holding at a loss to return the bank to the market.
Whether the money is used for divis or buybacks, the equity holders will benefit and that includes HMG.
Looks like the government are pushing RBS to pay a larger fine, in order to settle this quickly. So that they can then sell more share at a lose to head fund managers who can only buy once RBS start to pay a dividends again. But I thought RBS also needed to dispose of W&G as part of the deal with ECB. On the plus side looks like a token dividends is on the way, maybe ahead of next march date.
" FTSE FOR FRIDAY (FTSE:UKX) The market has experienced a week, reminiscent of the weather here in Scotland. In a word, miserable! While the index itself 'only' managed break our immediate drop target by 3 points, we have concerns should the ..."
" THE ROYAL BANK OF SCOTLAND (LSE:RBS) Unlike Barclays or LLoyds Bank, we find ourselves unable to draw a nice neat trend line from "the day it all went wrong". Essentially, in 2008, RBS needed a little manipulation to continue the forced ..."
I read in yesterday's ST that RBS is hoping to pay an interim divi this year. I guess it will all depend on the scale of any American fine they are expecting. Even a small divi will be welcome as we have to start somewhere.
In regards to dividends, thought they could not paid till march 2019 at the earliest. Not sure about all the condition before RBS can start paying out dividends again, but I thing it's until government insurance scheme ends and EU condition over the bail out has been dealt with. But the fact RBS has posted a profit, if lower than expected is still a good thing. Showing they are moving in the right direction.
Ex div. There was a lot of speculation that RBS May pay a dividend this year, cant see this on these results along with outstanding US dep of Justice delays. You have to believe RBS fine is not on their agenda whilst Russian investigation is under way
Very true. For me the real selling point is the growth in the S/P over the next few years. 27% last year and hopefully another 20%+ this year will make up for lack of dividends.
As with Lloyds the profit are small to start off with, but I feel RBS profit can jump quite quickly compared to Lloyds. So will the S/P if quarter on quarter it can post a profit. It will have some set back, as has Lloyds but now it has posted a profit just as Lloyds has it will go from strength to strength. Looking forward to the year ahead.
Despite the fall in the sp on publication of the results, I think we can take some cheer that RBS has at last posted a profit. These recoveries take time to work through as we know from LLOY. No divi but the profit was small and there is a need to manage the recovery in a prudent way.
I think that there is great potential for sp growth over the coming years. The expectation of rate increases should be helpful in this.
Clearly market did not like the results today. Even though it has declare a profit. Not as big a the market was hoping for, but still it's a profit. This year is a big year for RBS as it bounce back into a profitable bank again and try's to put the past behind it. In order to do this, it has to clear the lawsuits still hanging over it quickly as possible. But RBS has turned the corner and is on the way back, so interesting times ahead for the company and share holders.
Still can not believe how quite this board is even on result day. NO POST. UNREAL. I've seen more post on northern rock site, even after a year of it stop trading than here.
" FTSE FOR FRIDAY (FTSE:UKX) It's rare for us to approach the weekend with a "thank goodness it's over" but the last week has been rather foul. We love market volatility as it makes life bearable but the FTSE has shown more movement in the ..."
" FTSE FOR FRIDAY (FTSE:UKX) As feared, our 100% success rate fell apart last Friday when the expected FTSE scenario didn't even happen. At least this should not have caused any friendly fire incidents but it does worry us, due to potentials ..."
Not long now for the results to come out. Analysis predicting profit of around £2.6bn, and now past the £3 mark should help get this share price moving and noticed by the news outlets.
Only draw back is the American lawsuit still outstanding. Can't seem to find out the latest on that. Last thing I read was early December and that was hopeful it would be settle before the new year. Clearly that has not happened.
This could be very bad for the bank's. Carillion turned itself into a company of sub contractors , who employed thousands of large and small company's. I can see hundreds of small company going bust with a few bigger ones really struggle to get pass this, and it will be the bank's having to deal with this over the next few months as company start to go bust or can't service there loans. and the banks try and support them pass this. But at the end of the day banks will take a hit on this, question is by how much.
I don't think the government would or could turn Carillion into another RBS or Lloyds. more likely let it be broken up. Vince cable went on about the banks being to big to fail. what about some of the big company and corporations, don't see him shouting about this.
Sorry, I'll clarify - it's been a dog of a share for the best part of the last decade.
You are right, there does appear to be a little bit of light at the end of the long RBS tunnel. As for the share price it does tend to jump high and quick, then retract slightly, stay at that level, before reaching a new high.
You say this has been a dog of a share, that true in the past and so has Lloyds. But this last year has seen RBS climb from just over £2 to £2.90 and now posted profits quarter on quarter. Settle claims against it, and now looks likely to post a decent profit for the year. Showing it can now almost now put most of the trouble in the past. This looks very promising share to hold going forward. Also when this share price jump's it tends jump high and quick, so catching the rallies can be very rewarding. Am up almost £5k with several still open position up another £1.5k but not as yet closed position, since xmas.
Lloyds has now made that steady recovery and is posting profit and slowly increasing it's dividends. Which this year will start to show in it's share price. RBS IN NOW clearly past that recovery stage and starting climb again. The next hurdle for RBS is return to paying dividends next year and the sale of government shares.
It's a very quite board because while you say Lloyds has been treading water, RBS has been a complete dog for a number of years. Although if you're canny enough you'll sell into the rallies and you should do okay.
Thanks to post on the LLOYDS site, about RBS I decided to have another look into RBS. Thankfully so far it has worked out well. As you say LLOYDS have been treading water in it's share price. But this year it might make that break out if the next set of results are very good along with the dividend payment. But with RBS I feel that has already started at the beginning of last year and another 20-30% this year may well be on the cards. Let hope so.
My, my ...this is a quite board compared with LLOY. And, indeed, there is much more excitement given that the RBS sp has risen by around 27% over the last 12 months whereas LLOY has been treading water.
Hi II Editor,
Can you help clear something up for me, as you seem very knowable about RBS. Am new to RBS and although I did a bit of reading before I brought into RBS, I lost track on the bit about the conditions for the return for dividend payment. I did read that dividends where not due to paid out till early 2019 but forgot why. Is it the US, DOJ settlement being one and maybe the government insurance scheme another or the ECB about the disposals of W&G or Is it all 3.
Clearly RBS is now making a profit quarter on quarter on the day to day side of business, but is having to put money aside for PPI and lawsuits. Which will reflex on the overall profit it might declare for the Full year results due out in February. Should RBS get a settlement before results out and declare profit than the target price you mention £3.53 next year is I think achievable, let's hope so. Bit surprised how quite this boards is given the share price has climbed 70-80p in a year and RBS is now it seems making a profit.
"Â The Royal Bank of Scotland (LSE:RBS)It's time for our monthly moan about LSE:RBS:RBS, the bank that likes to say "doh". Oddly though, for four days earlier this month, the company share price actually managed to close a session above the trend ..."
" The Royal Bank of Scotland (LSE:RBS) It's time for our monthly moan about RBS, the bank that likes to say "doh". Oddly though, for four days earlier this month, the company share price actually managed to close a session above the trend since ..."
I think the plan is to try and sell 2/3 of the share's which is still a lot. But if it is manage right and RBS continues increase profit quarter on quarter and it's share price increases in the same way as the last year. Than by the time the sale start the government could be close to break even price and over time pass that price. Hopefully it has learnt from Lloyds sale to get it right this time.
As for the so called "bad bank" after 10 years most loan's will by now be back it order, either paid off or now classed as good loans. I myself had a BTL mortgage which was classed as a bad loan because of the housing crash. The value drop 40% and 30% below what I owed. Even though I had never missed a payment and was in fact ahead in my payment, because I owed more than the value of my property it was classed as a bad loan. Over time I reduced what I owed and the value when back up a bit. which most likely the same for most other loans that have not been sold off.
" FTSE this week (FTSE:UKX) & GBP EUR In common with, we suspect, most of the UK, we've some doubts as to the integrity of any vaunted agreement between our esteemed leaders and the European mob. However, currency markets appear on the verge of ..."
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