Royal Bank Of Scotland Is Making Progress Slowly
The Royal Bank Of Scotland: Undervalued As Restructuring Moves Forward
Helix Investment Research • 17 Comments
Helix Investment Research • 17 Comments
Apr. 27, 2015, 4:36 AM
- Royal Bank of Scotland (NYSE:RBS) has sold another portfolio of North American loans to Mizuho Financial Group (NYSE:MFG), as it continues to sell off international assets to focus on domestic lending.
- The agreement swaps $5.6B of loan commitments for $500M in cash, generating an overall disposal loss of around $30M.
- Back in February, RBS agreed to sell different U.S. and Canadian loan commitments to Mizuho under a deal worth $3B, marking the largest move overseas by one of Japan's top banks.
Apr. 21, 2015, 1:52 AM
- The U.S. Department of Justice is now pushing for five banks, including JPMorgan (NYSE:JPM), Barclays (NYSE:BCS), Citigroup (NYSE:C), RBS (NYSE:RBS) and UBS (NYSE:UBS), to reach a joint mega settlement to allegations they manipulated the foreign exchange markets.
- The deal would see some institutions pay about $1B each and is scheduled for mid-May, FT reports.
- Last November, the banks (except Barclays) agreed to pay $4.3B to authorities in the U.S., U.K. and Switzerland in the first settlements announced in the forex investigation, although the DOJ was not included on that ticket.
Apr. 15, 2015, 3:19 PM
- A federal appeals court rejects claims from investors in the ADS's of Royal Bank of Scotland (RBS +0.8%) that the bank defrauded them by lowballing its subprime exposure ahead of the financial crisis.
- Dissenting from the 2-1 opinion, one judge says the bank materially misled investors by falsely denying on April 22, 2008 that the U.K.'s FSA had ordered a capital raise.
- Today's decision upholds a ruling previously made by a U.S. District judge.
Apr. 13, 2015, 1:31 PM
- Part of a continuing plan for the state-backed lender to return to being just a U.K. retail and commercial bank, Royal Bank of Scotland (RBS +1.4%) hired PwC to advise on a sale of the business, which has some €20B in AUM.
- One of the operation's largest clients is the European subsidiary of Industrial and Commercial Bank of China, reports the FT.
- Previously: Official: UBP to buy RBS's Coutts International (March 27)
Apr. 1, 2015, 10:45 AM
Mar. 30, 2015, 10:00 AM
- After just a couple of months as executive chairman of the corporate and institutional bank at Royal Bank of Scotland (RBS +0.3%), Rory Cullinan will leave the company at the end of April.
- Cullinan is also in charge of the RBS's "bad bank" - named Capital Resolution - responsible for selling or closing noncore businesses and other unwanted assets. Those duties included overseeing the spinoff of Citizens Financial Group last year.
Mar. 30, 2015, 9:17 AM
- Unlike last year's stress test which focused on a U.K. property bust, this year's version deals more with how banks would handle a global economic slowdown and market tumble, suggesting lenders like HSBC, Standard Chartered (OTCPK:SCBFF), and Barclays (NYSE:BCS) could have a tougher go of it.
- The seven lenders tested will have to maintain a CET 1 ratio of 4.5% and a leverage ratio of 3%.
- Also to tested: RBS, Lloyds (NYSE:LYG), Santander U.K. (NYSE:SAN), and Nationwide Building Society.
- Results are due in December.
- Sources: Bank of England, WSJ
Mar. 30, 2015, 4:09 AM
- Top European and U.S. banks axed 59,000 jobs last year as they restructured, cut costs and moved further into digital banking, Reuters reports.
- The figure brings the total number of jobs lost across 24 banks in the last two years to 160,000.
- Notables: Barclays (NYSE:BCS) shed 7,300 jobs last year due to a three-year plan to cut 19,000 staff; RBS (NYSE:RBS) slashed 10,000 employees as it sold overseas businesses and trimmed its investment bank further; JPMorgan (NYSE:JPM) and BofA (NYSE:BAC) also made substantial job cuts as they worked through troubled mortgages and refinanced loans at lower rates.
Mar. 27, 2015, 4:39 AM
- Swiss private bank Union Bancaire Privee has agreed to buy Royal Bank of Scotland's (NYSE:RBS) international private banking arm Coutts International.
- "This acquisition confirms our commitment in further developing our wealth management business and represents a significant milestone in our growth strategy," said UBP's chief executive.
- While both parties did not disclose a price, the FT suggested on Thursday that the deal would fetch $600M-$800M.
- Previously: RBS sale of Coutts International getting near (Mar. 26 2015)
Mar. 26, 2015, 3:00 PM
- Royal Bank of Scotland (RBS -0.5%) is soon set to announce the sale of its international wealth management unit Coutts to Switzerland's Union Bancaire Privee, reports the WSJ.
- Analysts figure the sale price will be in the area of $600M.
- The move is in keeping with RBS's (80% state-owned) to focus its energies and capital on being a U.K. retail bank.
- Previously: RBS narrows field of bidders for private-banking business (March 13)
Mar. 26, 2015, 2:28 AM
- Royal Bank of Scotland (NYSE:RBS) has increased the value of shares it's selling in Citizens Financial (NYSE:CFG) to as much as $3.7B after receiving stronger demand from investors to own a stake in its recently listed U.S. subsidiary.
- RBS agreed to sell a further 135M shares at $23.75 per share — plus a potential 20.25M overallotment option, reducing its stake in Citizens to 41.9% if the overallotment is exercised.
- RBS also aims to carry out another share sale later this year to slash its stake in Citizens below a third. That would allow it to say that it no longer controls the U.S. bank and therefore removes the company’s £60B of risk-weighted assets from its balance sheet.
- Previously: RBS slashing Citizens Financial stake (Mar. 23 2015)
Mar. 24, 2015, 3:26 AM
- The Federal Reserve and FDIC have vetoed the "living wills" of the U.S. units of BNP Paribas (OTCPK:BNPQF), HSBC (NYSE:HSBC) and Royal Bank of Scotland (NYSE:RBS), stating that they could face sanctions by the end of the year if the issues are not fixed.
- Living wills, which are a requirement under Dodd-Frank, spell out how a firm would wind down its operations under U.S. bankruptcy code if it got into trouble.
Mar. 23, 2015, 7:24 AM
- Citizens Financial Group (NYSE:CFG) launches a 115M share secondary offering of stock to be sold by Royal Bank of Scotland (NYSE:RBS). The underwriter greenshoe is 17.25M shares.
- The sale will take RBS's stake from 384.7M shares of 70.3% of the company to 269.7M shares or 49.3%. If the underwriters exercise their option, the stake would be whittled to 46.1%.
- Previously: Barron's: More room to run for Citizens Financial (March 21)
Mar. 20, 2015, 3:49 PM
- Prior to the financial crisis, UBS's trading floor in Stamford, CT was the world's largest, and RBS's right across the street wasn't far behind.
- It's a different story since, and both banks are busy scaling back trading and U.S. operations. Staff at UBS's Stamford operation numbered just 500 as of last summer, down from a peak of 4K, and RBS has 1.6K, down from 2.4K a year ago - and with hundreds more set to go.
- Current talks would have UBS renting about 25% of the space in RBS's building, with RBS retaining the rest.
Mar. 18, 2015, 2:38 AM
- The DOJ is considering revoking years-old settlements and prosecuting banks for manipulating interest rates should they be found to have committed currency-rigging after after deals were negotiated.
- "Where banks fail to live up to their commitments, we will hold them accountable," said the DOJ's Leslie Caldwell. "The criminal division will not hesitate to tear up a DPA or NPA and file criminal charges."
- Banks under investigation: BCS, RBS, UBS, HSBC
Mar. 13, 2015, 4:09 PM
- It's looking like $1B is the price the DOJ wants from banks to make the forex manipulation probe go away, according to Bloomberg. Banks, however, are finally starting to feel their oats and pushing back a bit more than in the mortgage probes - the final penalty could be lower, according to sources.
- Among the lenders discussing settlements: Barclays (NYSE:BCS), Citigroup (NYSE:C), JPMorgan (NYSE:JPM), RBS, and UBS. The government is also readying cases against individuals.
- In the global investigations, banks have already agreed to pay regulators about $4.3B.
Royal Bank of Scotland Group Plc operates as an international banking and financial services company that provides a wide range of products and services to personal, commercial, and large corporate and institutional customers through its two principal subsidiaries: The Royal Bank of Scotland Plc... More
Industry: Money Center Banks
Country: United Kingdom
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