Financial Trading Blog
Stock of the day 28/04/2016 – Royal Bank of Scotland Group PLC
It was one way traffic for RBS as 2016 got underway, the stock seeing a near uninterrupted fall from £2.99 at the start of the year to £2.21 by February 11th. The bank did see a brief bump in the middle of the month, lifting back to the £2.60 mark, only for its full year figures to nip any nascent goodwill in the bud.
In a blow to George Osborne (the bank still 73% owned by the government) RBS sunk further into the red for an 8th consecutive year, revealing a £2 billion loss for 2015. The bank’s numbers were bad across the board, with a £1.6 billion drop in underlying profit to £4.4 billion, £3.6 billion in (largely US-based) charges and fines, and £2.9 billion set aside for restructuring.
(Source: IT-Finance.com 28/04/2016)
This put RBS on the back foot, and despite a slight increase over the first 3 weeks of March by the start of April the stock was lurking at a 3 and half year-plus low of £2.04. Yet from this nadir RBS has seen a sharp rebound in the last few weeks, hitting a 2 month high of £2.57. The bank sits at a current trading price of £2.50 (IT-Finance.com, 28/04/2016).
In terms of those Q1 figures analysts are expecting revenue to drop by nearly a third to £2.93 billion, with the main focus likely to be on the bank’s £957 million loss (just shy of double what was seen this time last year), largely incurred due to £1.2 billion ‘golden share’ payment to the Treasury during the quarter. Of course investors will also be looking for news (or, ideally, no news) of any further compensation, fines and legal expenses, with Standard & Poor’s reporting earlier in the week that the UK’s Big Four could still end up paying out £19.5 billion between them across 2016 and 2017.
Royal Bank of Scotland Group PLC has a consensus rating of ‘Hold’ with an average target price of £3.01.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
