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The Royal Bank of Scotland Group plc (RBS)

  • Jun. 24, 2014, 11:26 AM
    • Citigroup (C), HSBC North America, RBS Citizens, and Santander Holdings U.S.A. (SAN) were originally required to re-submit capital plans by the end of business on Thursday, but - following requests from the banks - the Fed is giving them until January 5 of next year, the due date for the next round of annual plans for all of the lenders under the CCAR umbrella.
    • Previously: Passing next stress test is job #1 at Citi
  • Jun. 20, 2014, 2:00 AM
    • Royal Bank of Scotland (RBS) will pay $99.5M to settle a lawsuit which accused the bank of selling sour mortgages to Freddie Mac (FMCC). The case is one of two lawsuits filed by the Federal Housing Finance Agency against RBS.
    • This also marks the 15th mortgage security settlement since 2011 won by the FHFA, on behalf of Fannie Mae (FNMA) and Freddie Mac.
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  • May 30, 2014, 7:32 AM
    • RBS is looking for investors to buy a stake in Ulster Bank's operations in the Republic, or for another bank to merge with the division, after racking up £17B in losses since the property crash.
    • Somebody's about to get a good deal as RBS' decision appears to be political (it's under pressure to pay back bailout funds) rather than financial, with analyst Stephen Lyons noting the curiosity of selling amid Ireland's rebound and Ulster having returned to making a profit.
    • “The U.K. government is looking down the barrel of a general election,” says Ray Kinsella, banking professor at University College, Dublin. “There’s little doubt that the U.K. is putting pressure on RBS to accelerate restructuring, including increasing lending to the domestic economy, and to reduce its direct exposure to a problematic presence in the Republic.”
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  • May 29, 2014, 10:28 AM
    • Royal Bank of Scotland (RBS +0.9%) becomes the latest lender to divest P-E holdings amid moves to focus on core businesses, reportedly agreeing last month to sell its stake in RBS Special Opportunities Fund for about £100M.
    • The unit raised £1.1B back in 2007.
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  • May 27, 2014, 2:52 PM
    • Ahead of new U.S. regulations, RBS is planning to cut up to 400 trading jobs at its Stamford headquarters over the next 18 months, reports the WSJ. The bank is making the move as it exits its mortgage-trading and distressed-loan trading businesses, say sources. The bank's U.S. operation currently employs about 2.4K.
    • New capital rules mandated by Dodd-Frank will apply to foreign banks with at least $50B in assets in their U.S. units, and RBS intends to cut about $10B in risk-weighted assets by the start of 2015 to get below the $50B threshold.
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  • May 22, 2014, 7:53 AM
    • At issue is Royal Bank of Scotland's (RBS) £12B rights issue during the crisis in 2008, and hundreds have alleged they were misled and claimed damages of about £4B. Through nine of  its pensions and investment management subsidiaries, Lloyds (LYG) has joined the action, seeking £420M.
    • This week marked the six-year anniversary of the sale, the cut-off point at which damage claims must be submitted. RBS, at this point, has indicated no intention of settling.
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  • May 13, 2014, 3:26 AM
    • RBS's (RBS) American subsidiary, Citizens Financial Group, has filed for an IPO in the U.S. as the British bank continues its strategy of refocusing on its U.K. operations and strengthening its capital base.
    • Last year, RBS said it would sell 20-25% of Citizens by the end of 2014 via a U.S. listing.
    • Citizens said it would trade under the ticker symbol "CFG", but it didn't say how many shares would be sold, nor at which price. The amount to be raised was put at a preliminary $100M, although the actual figure will probably be higher. Citizens itself won't receive any proceeds.
    • The bank said that in March the Fed rejected its capital plan, while two units have received consent orders from regulators in relation to deceptive marketing, and to the implementation of the firm's checking account and funds transfer services.
    • ETF: IPO
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  • May 2, 2014, 9:18 AM
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  • May 2, 2014, 3:28 AM
    • Royal Bank of Scotland's (RBS) Q1 net profit soared to £1.2B ($2.02B) from £393M a year earlier, lifted by a significant drop in impairments at the bank's Irish division, and by not having to make new provisions for the mis-selling of protection insurance or toxic assets. Analysts had expected a loss of £200M.
    • Pretax profit increased to £1.6B ($2.7B) from £826M, while operating earnings rose to £1.5B from £747M.
    • Revenue fell to £5.05B from £5.16B but topped consensus of £4.7B.
    • The common Equity Tier 1 ratio rose to 9.4% from 8.6% in December.
    • RBS could float its Irish unit, Ulster Bank, The Irish Independent reports. Until now, RBS has been trying to sell a stake to a U.S. private-equity house or seek a merger with nationalized Irish peer Permanent TSB.
    • RBS's shares are +9.95% in London. (PR)
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  • Apr. 29, 2014, 8:03 AM
    • Among the severe scenarios under which U.K. bank balance sheets will be tested for are a 35% fall in house prices, a sharp rise in interest rates over three years to 4%, GDP slumping 3.5% below its current level, and an unemployment rate peaking at 12%.
    • Among those subject to the test: HSBC, RBS, BCS, LYG.
    • The exams are being run alongside European-wide stress tests, with results expected to be published in Q4.
    • Even banks who "pass" the test could be requested to boost their capital, warns the BOE.
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  • Apr. 25, 2014, 1:59 PM
    • U.K. Financial Investments - the body in charge of the government's 80% stake in RBS - had wanted to approve the bonus plan, reports the WSJ, but was overruled by politicians in the U.K. Treasury. To review, the UKFI was set up in 2008 to manage the government's banks stakes at "arms length."
    • Treasury Chancellor George Osborne has been a loud opponent of salary caps proposed by European regulators, but his fingers work in the wind as well as anyone else's. He reportedly met with RBS CEO Ross McEwan yesterday to discuss the issue.
    • "RBS is heading in the right direction, but it has not yet completed its restructuring and remains a majority publicly-owned bank. So an increase to the bonus cap cannot be justified," says a Treasury spokesman.
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  • Apr. 25, 2014, 11:24 AM
    • At issue are claims by the 5 institutional investors that they were misled about a €12B equity raise in 2008 as the bank sought to bolster capital amid the gathering crisis. Reuters reports they plan to file lawsuits in London on Wednesday.
    • "While RBS and its former directors made some business decisions that have been criticized, this does not mean that they misled investors or acted illegally," says the bank in a statement.
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  • Apr. 10, 2014, 3:27 AM
    • RBS (RBS) has agreed to pay £1.5B ($2.5B) to the U.K. government to end the sides' dividend access share arrangement, which has been in place since the bank's £45.8B bailout during the financial crisis and gives the Treasury priority over dividend payments.
    • The cancellation clears another obstacle to RBS's privatization and enables the bank to make its future dividend policy more clear. However, RBS has no plans to restart shareholder payouts in the near future.
    • Meanwhile, the EU has given RBS extra time to divest 315 branches that the bank has to sell as a condition of its bailout. RBS must start selling shares in the branches, re-branded as Williams & Glyn, by the end of 2016 and divest the whole interest a year later. RBS plans to float Williams & Glyn in an IPO.
    • RBS shares are +1.7% in London.
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  • Apr. 7, 2014, 1:13 PM
    • Nine months ago, the European Commission accused 13 banks of blocking Deutshce Boerse (DBOEY) and CME from entering the lucrative CDS business between 2006-09, but the banks, reports Reuters, are set to fight those charges at a closed-door hearing next month.
    • Should they lose, the banks could be subject to fines of up to 10% of their global CDS turnover - not a small amount given the size of the market.
    • Those charged and expected to fight: C, GS, DB, BAC, BCS, BNPQY, CS, HSBC, JPM, MS, RBS, and UBS.
  • Apr. 4, 2014, 7:54 AM
    • RBS's new CEO is Ewen Stevenson, who comes over from Credit Suisse where he was co-head of the investment bank for EMEA. He replaces Nathan Bostock at RBS, who lasted just two months on the job before exiting to become deputy CEO of Santander's U.K. unit.
    • “The fact that Ewen has been co-head of global financials and co-head of Europe creates the width of experience that the CFO at RBS needs," says Bernstein analyst Chirantan Barua, who rates the stock an Outperform. "[That] goes rom dealing with regulators and litigation at risk in the U.S. to wide-ranging discussions in Europe across clients and regulators.”
    • The stock's off 2% in London action.
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  • Apr. 1, 2014, 4:43 AM
    • A group of investors from across the U.S. and Caribbean have filed a class-action lawsuit against 12 banks for allegedly colluding to manipulate currency rates.
    • The firms being sued include Bank of America (BAC), Barclays (BCS), Citigroup (C), Credit Suisse (CS), Deutsche Bank (DB), Goldman Sachs (GS), HSBC (HSBC), JPMorgan (JPM), Morgan Stanley (MS) and RBS (RBS).
    • The investors include city and state pension plans such as the City of Philadelphia and the State-Boston Retirement System.
    • The suit adds to multiple investigations by international authorities into forex manipulation, the latest being the Hong Kong Monetary Authority.
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Company Description
Royal Bank of Scotland Group (The) PLC is an international banking and financial services company. The Company through its subsidiaries provides banking products and services to personal, commercial and large corporate and institutional customers.
Sector: Financial