Royal Bank of Scotland Group (lon:rbs)
RBS Does Anyone Understand It?


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Title: RBS Does Anyone Understand It?
Company: RBS - Royal Bank of Scotland Group
Share Price Then: 252p
Author: Ian Smith
Date: Tue 18 Jul 2017
Comments: Royal Bank Of Scotland is a complete mystery to me, year after year the fines keep rolling in and losses mount up.

We can even ask what is its core business for the future?

Is the branch sell of required by the EU regulators going to happen? There have been a few failed attempts and with a bit of foot dragging RBS may not have started a real transfer of accounts to another bank before we have left the EU.

The government still own 70% and there are no signs that the bank as a whole is close to profitability or that the government will either wind it up or sell its stake at a massive loss.

Yes, the bank does claim that its core business is making money and once if the fines are ignored then the bank is profitable. This is of course before all of the cost cutting measures and branch closures which may impact customer satisfaction.

PPI still seems to be a bit of an elephant in the room, it was a source of a lot of profits in the past and it is not clear how those profits are going to be replaced in the future. RBS (July 2017) are offering current accounts with fees and various insurance products included.

Interestingly the selling of the government stake in Lloyds doesn't seem to have had much effect on their share price, probably because it had become expected as there were regular sales of part the governments holding.

So the only reason that I can see for buying is the very dangerous game of trying to analysis share price charts and trends which seem to be unrelated to the actual business performance.
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