reports
- Pedro Fonseca
NatWest Group - Time for a re-rating?
Q423 earnings demonstrated the inherent profitability and resilience of returns at NatWest Group (NWG). PBT came in 25% ahead of consensus, with beats on both revenues and impairments along with good cost control. Despite continuing normalisation of credit and assuming around two more base rate cuts in 2024 than are currently priced into the bond market, management expects to deliver a return on tangible equity (RoTE) of c 12%. On consensus estimates, the shares trade at 0.8x tangible net asset ...
- Derya Guzel
Morningstar | Business Uncertainty Following Prolonged Brexit Hangs Ov...
RBS reported first-quarter 2019 operating profit before tax of GBP 1 billion compared with GBP 1.2 billion the same period a year ago. Lower operating expenses, down nearly 4% year over year, were not enough to offset weaker income generation. Net interest income declined 5% to GBP 2 billion, mostly driven by NatWest markets and personal banking. Excluding one-off items in these segments, generally higher economic uncertainty and continuously high competition in the mortgage market could be seen...
- Derya Guzel
Morningstar | New RBS Company Report
While there are signs of green shoots in Royal Bank of Scotland's revenue generation, challenges regarding litigation and restructuring costs, as well as revenue generation, remain to be dealt with in the short term. RBS posted 2018 full-year annual net income of GBP 1.6 billion versus GBP 752 million in 2017. While operationally somewhat better than the previous year, significantly lower restructuring costs were the biggest supportive factor in 2018. Although it is rather slower than peers, it ...
- Derya Guzel
Business Uncertainty Following Prolonged Brexit Hangs Over RBS' Near-T...
RBS reported first-quarter 2019 operating profit before tax of GBP 1 billion compared with GBP 1.2 billion the same period a year ago. Lower operating expenses, down nearly 4% year over year, were not enough to offset weaker income generation. Net interest income declined 5% to GBP 2 billion, mostly driven by NatWest markets and personal banking. Excluding one-off items in these segments, generally higher economic uncertainty and continuously high competition in the mortgage market could be seen...
- Derya Guzel
Morningstar | All Aboard the Money Laundering Train; New Reports Impli...
Over the past days a consortium of investigative newspapers, online portals, and television programs revealed a web of money laundering activities flowing through the European banking system, which lay bare a different scale and urgency of the problem of anti-money laundering controls within most banks as well as regulators than previously acknowledged. Of the banks named thus far to be involved we cover Danske, Nordea, Swedbank, Raiffeisen, Erste, RBS (acquired the unit in question from ABN in ...
- Derya Guzel
All Aboard the Money Laundering Train; New Reports Implicate More Euro...
Over the past days a consortium of investigative newspapers, online portals, and television programs revealed a web of money laundering activities flowing through the European banking system, which lay bare a different scale and urgency of the problem of anti-money laundering controls within most banks as well as regulators than previously acknowledged. Of the banks named thus far to be involved we cover Danske, Nordea, Swedbank, Raiffeisen, Erste, RBS (acquired the unit in question from ABN in ...
- Derya Guzel
Morningstar | Lower Strategic Costs Boost 2018 Results for RBS; FVE Un...
Royal Bank of Scotland reported full-year 2018 operating profit of GBP 3.4 billion, up 50% from last year. We maintain our fair value estimate of $7.40/GBX 290 per share and no-moat rating despite this seemingly outstanding performance. Having a closer look at results, the lion’s share of operating profit improvements came from lower strategic costs booked, which are guided to increase next year again. Net interest income declined to GBP 8.7 billion from GBP 9 billion last year as the spread m...
- Derya Guzel
Lower Strategic Costs Boost 2018 Results for RBS; FVE Unchanged
Royal Bank of Scotland reported full-year 2018 operating profit of GBP 3.4 billion, up 50% from last year. We maintain our fair value estimate of $7.40/GBX 290 per share and no-moat rating despite this seemingly outstanding performance. Having a closer look at results, the lion’s share of operating profit improvements came from lower strategic costs booked, which are guided to increase next year again. Net interest income declined to GBP 8.7 billion from GBP 9 billion last year as the spread m...
- Derya Guzel
Morningstar | RBS Continues to Build Capital, Takes Provision Related ...
No-moat Royal Bank of Scotland continued to build its capital buffers in the third quarter as profits before tax grew to GBP 961 million from GBP 871 a year ago, although higher tax charges meant that aftertax profits fell behind last year's performance. Net interest income of GBP 2,154 million disappointed relative to last year as well as on a sequential basis owing to competitive pressures, higher average liquidity balances, and some one-off items. The net interest margin stood at 1.93%, down ...
- Derya Guzel
Morningstar | RBS Continues to Build Capital, Takes Provision Related ...
No-moat Royal Bank of Scotland continued to build its capital buffers in the third quarter as profits before tax grew to GBP 961 million from GBP 871 a year ago, although higher tax charges meant that aftertax profits fell behind last year's performance. Net interest income of GBP 2,154 million disappointed relative to last year as well as on a sequential basis owing to competitive pressures, higher average liquidity balances, and some one-off items. The net interest margin stood at 1.93%, down ...
- Derya Guzel
RBS Continues to Build Capital, Takes Provision Related to Uncertainty...
No-moat Royal Bank of Scotland continued to build its capital buffers in the third quarter as profits before tax grew to GBP 961 million from GBP 871 a year ago, although higher tax charges meant that aftertax profits fell behind last year's performance. Net interest income of GBP 2,154 million disappointed relative to last year as well as on a sequential basis owing to competitive pressures, higher average liquidity balances, and some one-off items. The net interest margin stood at 1.93%, down ...
- Derya Guzel
Morningstar | High Liquidity Requirement and Litigation Provisions Hur...
The release of uncertainty around the U.S. Department of Justice settlement case related to missold residential mortgage-backed securities and a planned interim dividend of GBX 2 per share outweighed the Royal Bank of Scotland's uninspiring operational performance in the second quarter of 2018. The civil settlement reached in principle with the DoJ requires RBS to pay GBP 3.7 billion, which falls into our expected range of GBP 3 billion-GBP 4 billion. Additionally, RBS is looking to increase the...
- Derya Guzel
High Liquidity Requirement and Litigation Provisions Hurt 2Q Profits f...
The release of uncertainty around the U.S. Department of Justice settlement case related to missold residential mortgage-backed securities and a planned interim dividend of GBX 2 per share outweighed the Royal Bank of Scotland's uninspiring operational performance in the second quarter of 2018. The civil settlement reached in principle with the DoJ requires RBS to pay GBP 3.7 billion, which falls into our expected range of GBP 3 billion-GBP 4 billion. Additionally, RBS is looking to increase the...
- Derya Guzel
RBS Starts 2018 Well; While Results Are Somewhat Encouraging, Litigati...
Royal Bank of Scotland booked GBP 792 million attributable profit for the first quarter, more than triple its GBP 259 million in the year-ago quarter. RBS’ total revenue line increased 3% during the quarter, supported by an 18% increase in non-interest-income-related items, while net interest income saw a 4% decline year over year. Within the revenue-generating items, RBS kept fees flat as trading income increased 4%. A boost in the bottom line mainly came from the cost line through a sharp ...
- Derya Guzel
While litigation and restructuring costs remain a downside, RBS has a ...
RBS posted full-year annual net income of GBP 752 million versus a GBP 7 billion net loss in 2016. While lower than we were expecting, net income was higher than the consensus loss estimate. While operationally somewhat better than last year, significantly lower litigation and conduct cost and lower restructuring costs helped RBS to return the bank to profit. Although it is rather slower than peers, it seems RBS management has found a good path to resolve outstanding issues and to operationally ...
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