|Bid||224.60 x 0|
|Ask||224.70 x 0|
|Day's Range||223.00 - 230.29|
|52 Week Range||176.55 - 274.20|
|Beta (3Y Monthly)||1.11|
|PE Ratio (TTM)||13.63|
|Earnings Date||Feb 14, 2020|
|Forward Dividend & Yield||0.04 (1.78%)|
|1y Target Est||301.06|
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Ulster Bank Ireland DAC and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
The UK’s biggest banks have failed in their bid to levy a “transaction fee” of nearly 3p to compensate victims of banking fraud after an industry consultation deemed the plan unworkable. when customers transferred sums of money above £30. “There are lots of different business models in banking, and certain models mean the experience of fraud is much lower,” said Paul Horlock, chief executive of Pay.uk, the industry group which carried out the consultation.
Moody's Investors Service ("Moody's") today took rating actions on 15 UK banks and building societies. The action reflects Moody's view that the operating environment is likely to weaken, given deteriorating institutional capacity and commitment to fiscal discipline in the UK, together with a worsening economy. This follows the change in outlook on the UK sovereign debt rating to negative from stable, which the rating agency announced on 8 November 2019 (Moody's changes outlook on UK's rating to negative from stable, affirms Aa2 rating; https://www.moodys.com/research/--PR_396604).
We note that the The Royal Bank of Scotland Group plc (LON:RBS) Chief Operating Officer, Mark Bailie, recently sold...
The UK’s general election campaign officially begins on Wednesday, injecting five weeks of uncertainty into markets. Investors will watch on two fronts: the vote’s impact on the shape of Brexit and its implications for the domestic economy. “Confident predictions about the UK election are impossible for now,” TS Lombard said this week.
The former head of the much-criticised restructuring unit at Royal Bank of Scotland told a High Court trial of “tensions” between the bank and a defunct government agency that insured its toxic loans after the 2008 financial crisis. Derek Sach, who led RBS’s Global Restructuring Group, appeared as a witness at the High Court on Tuesday in a trial brought by Oliver Morley, a property developer, who is suing the bank. Mr Morley claims RBS placed him under “unlawful and illegitimate pressure” to transfer assets to the bank’s West Register, a unit of GRG.
The Royal Bank of Scotland plans to issue what it says is the first “social bond” by a UK financial institution, aiming to use the funds raised to support some of the most economically deprived regions of the country. The bond proceeds would back lending to small- and medium-sized companies in areas with high unemployment, the bank said, as well as to refinance outstanding loans to such businesses. “Green bonds” and loans, typically issued for sustainable energy projects, continue to comprise the majority of the sustainable debt market, with social bonds — which can be issued for projects such as affordable housing and infrastructure — a growing niche.
A mandatory 24-hour delay on all first-time payments from one bank account to another would cut mounting fraud in finance, UK lawmakers said in a report on Friday. Parliament's Treasury Select Committee said fraudsters stole over 600 million pounds ($777 million) from consumers in the first half of 2019 and regulators must crack down harder on scammers. With money transfers between accounts taking just seconds, customers or their bank have little time to be aware that a fraud has taken place, the report said.
Lloyds Banking Group came close to suffering a shock third-quarter pretax loss on Thursday after an increase in bad loans and a fresh 1.8 billion pounds ($2.3 billion) provision for mis-sold loan insurance payouts. Pretax profit of 50 million pounds fell short of a 163 million pound average analyst forecast as Britain's most costly consumer banking scandal continued to haunt the bank. As Britain's biggest mortgage lender, due in part to its Halifax business, and a key source of finance for small companies, Lloyds is seen as a bellwether for the UK economy, and most exposed to shaky sentiment among business and household borrowers unsettled by Britain's protracted exit from the EU.
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...
(Bloomberg) -- Royal Bank of Scotland Group Plc’s small-business lender is back in the spotlight 15 months after financial regulators found it systematically mistreated clients in a bid to drive profits.Emails between RBS executives referring to the banks’ relationship with property developer Oliver Morley, who’s suing over a 2006 deal for the repayment of a 75 million-pound ($97 million) loan, create a picture “of individuals who have lost their moral compass,” Morley’s lawyer Hugh Sims told a London court at the opening of the trial Monday.Morley alleges that the lender, under the influence of an arm of the U.K. government’s treasury, used unlawful threats to pressure him to transfer his assets to an RBS subsidiary. This included a warning from RBS that it would use a pre-packaged sale to the subsidiary if Morley didn’t agree to the deal, Sims said. The bank denies the claims and says it acted properly.“Morley was pushed into submission for reason of lack of any alternatives,” Sims said, pointing to e-mails between RBS executives.Morley says he suffered a loss of 34.2 million pounds in income and capital gains because of the break-up of his real-estate portfolio.A November 2009 message sent to Toni Smith, a manager at RBS’s Global Restructuring Group, to schedule a meeting to discuss Morley’s situation referred to a “room booking for the Morley massacre on Tuesday,” what Sims describes as “prescient words.”Two weeks later, Smith emailed Joss Brushfield, director of the bank’s real estate asset management unit, that if Morley “disagrees then it’s his head on a spike,” referring to a proposed deal.The messages are “graphic illustrations of what’s in reality going on the ground, which was huge pressure imposed on Morley,” Sims said.In July last year, financial regulators published a report on the GRG unit after a lengthy investigation. It found that “systematic” mistreatment of small businesses took place and the unit often prioritized revenue generation over its clients’ long-term interest in a bit to establish itself as a “profit center” for the bank.Any information provided by Smith to Morley and his team wouldn’t have been phrased as threats and were simply warnings, RBS’s lawyer Paul Sinclair said in written submissions. Even if Smith did make “threats,” the bank’s conduct “was not unlawful,” he said.(Adds timing of hearing in second paragraph)To contact the reporters on this story: Ellen Milligan in London at email@example.com;Eddie Spence in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Anthony Aarons at email@example.com, Christopher Elser, Peter ChapmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The British pound hovered around a key technical level Thursday as markets awaited the European Union’s decision on whether to grant an extension to the U.K. to leaving the bloc.
(Bloomberg) -- Royal Bank of Scotland Group Plc’s profit in the third quarter was wiped out by a 900 million pound ($1.16 billion) charge tied to the long running insurance mis-selling scandal that has plagued most British lenders.The state-controlled bank also paid the price for being one of Britain’s top lenders, with higher than expected bad loans. RBS’s future is tied to the U.K. economy, whose outlook is clouded by the uncertainty around Brexit. “We are very focused on controlling the controllable,” said Chief Financial Officer Katie Murray in a call with reporters after the results on Thursday. “Our preparations are in place.”Shares dropped as much as 3.7% in London trading.Alison Rose will take over as chief executive officer in a week’s time, replacing Ross McEwan, and is expected to lay out her strategy in February. Rose is likely to maintain her predecessor’s drive to slash costs while finding growth in a U.K. market that banks have said is very competitive.RBS swung to a loss of 8 million pounds in the quarter after it set aside as much as 900 million pounds for claims related to payment protection insurance, or PPI, that customers didn’t want or need. The charge was at the higher end of its announced range of 600-900 million pounds.Murray was cautious on the potential for further PPI charges. “It would be very brave to say the line has been drawn" under the scandal, she said. However, "the day has ended for new applications to come in and for me that’s the best estimate” for the ultimate cost. British lenders have spent the past eight years compensating customers who were mis-sold PPI. The policies, some of which dated back decades, were intended to cover missed debt repayments and were often sold using aggressive tactics. In the worst cases, banks misled customers by telling them that PPI was mandatory for loans. RBS has made provisions totalling 6.2 billion pounds to date, the bank said.RBS also has the largest exposure to consumer credit and corporate loans in the U.K., according to JPMorgan Chase & Co. There has been a string of companies in trouble in the U.K. over recent months, including Thomas Cook Group Plc, which last month crashed under the weight of its debts. Its net impairment loss of 213 million pounds was lower than a year ago but higher than estimates.Other highlights from RBS’s results:Common equity Tier 1 ratio fell to 15.7% from 16.7% in 3Q last yearRBS said NatWest Markets had a “particularly challenging quarter”It posted total income of 150 million pounds from 569 million pounds in the same quarter last year, which it blamed on a poor performance in its rates unit(Updates with CFO comments from second paragraph.)To contact the reporter on this story: Stefania Spezzati in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Ambereen Choudhury at email@example.com, Marion DakersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The majority-state-owned bank booked a 900 million pound ($1.16 billion) provision to cover payment protection insurance costs. It said in September that the bank expected to book a provision of GBP600 million to GBP900 million.
Investing.com -- Here are the highlights of Thursday's regulatory releases from the London Stock Exchange. Please refresh for updates.
(Bloomberg) -- Two ex-Royal Bank of Scotland Group Plc executives who ran its controversial small business-lending unit are set to be dragged into court by a former client.Property developer Oliver Morley is suing RBS for a deal he made with the bank for repayment of a 75 million-pound ($97 million) loan it made in 2006. Morley alleges that the lender, under the influence of an arm of the treasury, put pressure on him to transfer his assets to an RBS subsidiary by making “unlawful and/or illegitimate threats.” The bank denies any threats against Morley.As part of his claim, Morley has pulled the two former officials back into the case. Derek Sach, former head of the embattled Global Restructuring Group at RBS, and John Donald Workman, who helped run the Asia-Pacific region, will get summons to testify in court.Spokesmen for Morley and RBS declined to comment on the case.The GRG scandal brought negative media coverage and political criticism to RBS. The unit was investigated by financial regulators after a government consultant claimed that many of its small-business customers were pushed into difficulty to bolster the lender’s earnings.The regulator’s July 2018 report found that “systematic” mistreatment of clients took place, as the unit sought to establish itself as a “profit center” for the bank, often prioritizing revenue generation over its clients’ long-term interests. According to a court filing by Morley’s attorneys, Sach and Workman were closely involved in the GRG unit.This past July, the regulator declined to take action against RBS or its senior officials following a highly-critical investigation, as it found no evidence that executives acted dishonestly. The decision to not take action was condemned by members of Parliament, including Nicky Morgan, then chair of the Treasury select committee, who branded it “disgraceful.” RBS eventually set aside 400 million pounds to compensate former customers.Document DisclosureAs part of a London High court ruling Tuesday, the bank will also have to disclose a wide range of documents relevant to Morley’s case including committee minutes, which it previously resisted handing over.Morley got a 75 million-pound loan to underpin his property portfolio, which he says was “massacred” as a result of his relationship with the bank. As a result of the foreclosure agreement entered into in 2010, properties valued at 45 million pounds were acquired by West Register, RBS’s property arm.The case hinges on the influence of the Asset Protection Agency, an arm of the U.K. treasury, which as a part of its post-financial crisis bailout of the lender ran the Asset Protection Scheme, safeguarding its investment in the bank.Morley says that the government agency directed the GRG not to accept his own refinancing proposals and forced “unacceptably harsh” terms of repayment on him. In a court filing, attorneys for RBS described the allegations as “incoherent.”To contact the reporter on this story: Eddie Spence in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Anthony Aarons at email@example.com, Christopher ElserFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
European shares broke a three-day run of losses on Monday, as investors stuck to hopes that Britain will avoid a disorderly exit from the European Union, while positive corporate updates and comments on U.S.-China trade talks added to the upbeat mood. The pan-European STOXX 600 index ended the session 0.6% higher, barely budging on news House of Commons speaker John Bercow refused to allow a vote on Prime Minister Boris Johnson's Brexit divorce deal, saying the same issue had been discussed on Saturday.
Here are the top stories on the business pages of British newspapers. - British Prime Minister Boris Johnson believes he "has the numbers" to ram his deal through the Commons by the end of the week, although the European Union is preparing to delay Brexit until February if he fails. - Visual effects firm DNEG, which has worked on films such as "No Time to Die" and "Captain Marvel", could have to pay HM Revenue & Customs more than 10 million pounds in back taxes and penalties, after details of an investigation came to light in disclosures filed last week.