|Bid||227.30 x 0|
|Ask||227.40 x 0|
|Day's Range||227.00 - 232.20|
|52 Week Range||200.10 - 274.20|
|Beta (3Y Monthly)||1.10|
|PE Ratio (TTM)||18.25|
|Earnings Date||Aug 2, 2019|
|Forward Dividend & Yield||0.07 (3.03%)|
|1y Target Est||301.06|
The Royal Bank of Scotland, state-controlled following a bailout, was a political hot potato in the UK until Mr McEwan lowered its temperature. It is hard to imagine Mr McEwan railing against critics as Standard Chartered’s Bill Winters has. The New Zealander needs to raise trust in NAB as he did at RBS.
National Australia Bank has picked the chief executive of Royal Bank of Scotland to lead the lender as it battles to repair its reputation after a series of scandals. Ross McEwan, whose tenure at the top of RBS has seen the UK taxpayer-owned bank return to profit, will take up the role by April next year, NAB said on Friday. The 62-year-old executive will have to steer Australia’s fourth-largest bank through the storm created by a national inquiry into misconduct across the finance industry.
Mr McEwan had won plaudits for returning RBS to profits and dividend payments after almost a decade without either following its £45bn bailout by the UK government during the 2008 financial crisis. The appointment of Mr McEwan follows the resignation of NAB chief executive Andrew Thorburn in February after stinging criticism of his leadership of the bank by a public inquiry into misconduct in the finance industry.
Moody's Investors Service ("Moody's") has today assigned long-term and short-term deposit and issuer ratings of Baa1/Prime-2 and a standalone baseline credit assessment (BCA) of baa1 to The Royal Bank of Scotland International Limited (RBSI), the Jersey-based subsidiary of The Royal Bank of Scotland Group plc (RBSG). In addition, Moody's also assigned Counterparty Risk Assessments of A3 (cr)/Prime-2(cr) and Counterparty Risk Ratings of A3/Prime-2 to RBSI.
(Bloomberg Opinion) -- When law firm Linklaters decided to organize a seminar about the forthcoming demise of Libor last week, it planned to hold the event in its London auditorium, which seats about a hundred people. After more than 500 attendees signed up, it was forced to move to a larger venue.Thursday’s packed attendance at the Honourable Artillery Company’s headquarters strikes me as testament to how corporate treasurers, bankers, accountants and consultants are belatedly realizing the scale of the task finance faces in replacing what was dubbed – and still arguably is – the world’s most important interest rate. But the awakening may still have come too late to avoid a chaotic and expensive denouement to the benchmark.The borrowing costs known as the London interbank offered rates are embedded throughout the DNA of finance. Untangling them, after the Financial Conduct Authority’s announcement two years ago that they’ll be phased out by the end of 2021, is proving difficult through a combination of apathy, complexity and a lingering hope that Libor will somehow limp on in some form or other.In the worst-case scenario, the disappearance of Libor could lead to the courts ruling that some existing contracts are deemed to have been frustrated. In legal terms, that happens when an event either makes enforcement of a contract impossible, or completely undermines the contract’s original intentions.This would place the market in largely uncharted territory – “contractual Armageddon,” in the words of Rick Sandilands, senior counsel, Europe at the International Swaps and Derivatives Association.The most extreme outcomes could be for the frustrated contracts to be unwound as if they never happened in the first place, or a court trying to account for the various benefits that had accrued during the contract’s life to come up with a settlement that treated parties to the agreement fairly.It’s an unlikely, though not impossible, scenario. But many of the legal experts who spoke at the Linklaters conference discussed the need for flexibility when writing or amending contracts that run past Libor’s end-date, because it’s still not 100% clear what form the replacement interest rate will eventually take, especially given that different countries are seeking different solutions.And where a lawyer sees elasticity, a hedge-fund may see potential profit. There’s a non-negligible risk that where a contract change creates a winner and a loser in financial terms, litigiously minded mischief makers may try their luck.Even without that doomsday outcome, rewriting contracts that refer to Libor is fraught with byzantine convolutions. Take, for example, a syndicated loan that pays interest based on Libor and was used to finance a toll road in Spain. Changing the terms probably requires the consent of the syndicate of banks that arranged the loan, as well as the borrower, as well as the providers of any hedging agreements undertaken, and maybe the agreement of the Spanish local authority that leased or sold the land the road is on. Now multiply that across the entire project finance universe to see the complexity of the shift to new benchmark borrowing costs.There has been some progress in persuading U.K. companies to adopt the Sterling Overnight Interbank Average rate, the preferred replacement for Libor. Last month, Associated British Ports Plc switched its 65 million pounds ($81.4 million) of floating-rate notes to making interest payments tied to Sonia rather than Libor. And last week, National Express Group Plc took out the first Sonia-based loan, from Royal Bank of Scotland Group Plc’s NatWest unit.While both are desirable developments in the shift to the overnight benchmark, a few deals do not a transition make. Linklaters estimates as much as $2 trillion of loans risk being left “in limbo” by Libor’s demise. And while more than 40 new sterling floating-notes tied to the new benchmark have been sold this year, there are billions of dollars, pounds and yen of outstanding notes that still base their payments on Libor – as much as $864 billion worth, according to the International Capital Markets Association.The logistical difficulty of rounding up the disparate investors in those securities to get them to agree to change the reference benchmark is daunting, to say the least. Moreover, even when the paperwork contains language about what to do if Libor isn’t available, that documentation was designed for brief periods of absence, rather than envisaging a world without Libor.In many cases, the interest payments revert to a fixed rate based on the final Libor determination – again creating the prospect of legal action from financially disadvantaged actors, legitimate or otherwise.Edwin Schooling Latter, the FCA’s director of markets, warned last week’s conference participants that they can expect “a lot of supervisory interest” if the regulator decides customers are being gouged by members of the finance community gaming the changes. He was adamant, meantime, that participants should come up with market solutions to the realignment rather than relying on the regulator to intervene.“I love deadlines,” wrote Douglas Adams, the British author of books including the Hitchhikers Guide to the Galaxy. “I love the whooshing noise they make as they go by.” With less than two and a half years before Libor’s scheduled death, the explosion in the world of finance if it arrives at the deadline without more preparation than is currently happening will be somewhat louder than a whoosh.To contact the author of this story: Mark Gilbert at firstname.lastname@example.orgTo contact the editor responsible for this story: Jennifer Ryan at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Ross McEwan became the CEO of The Royal Bank of Scotland Group plc (LON:RBS) in 2013. This report will, first, examine...
Just over a decade after fending off insolvency, taxpayer-backed Royal Bank of Scotland is struggling with an unfamiliar dilemma: how to effectively deploy billions of pounds of excess capital on its balance sheet. Years of cost cuts and asset sales have left the lender with jam-packed coffers, which management had hoped could help buy back the government's 62% stake in the quickest time possible. A few months ago, analysts and bank insiders believed the government was poised to begin selling RBS's stock back to the bank, a key step in a sales process aimed at reducing concerns about potential political interference in its lending activities.
Banks could be punished if they don't switch enough contracts from the Libor interest rate benchmark to a Bank of England alternative by the end of 2021, a senior British regulator said on Wednesday. The Financial Conduct Authority has told each bank to nominate a senior manager who is accountable to regulators for ensuring that contracts switch from referencing the London Interbank Offered Rate, or Libor, to the BoE's sterling overnight rate, Sonia. The FCA has the authority to fine or remove a senior banker's licence.
He'll take up the position of chief product officer and will lead productdevelopment for the new brand, reporting to Bó CEO Mark Bailie
Senior politicians have lambasted Britain's financial watchdog for failing to take action against RBS or its former executives for past mistreatment of small business customers. The Financial Conduct Authority (FCA) said it was sticking by its decision not to apply penalties for actions of RBS's former turnaround unit, the Global Restructuring Group (GRG). The mistreatment of businesses that were in financial distress and were moved into GRG is one of the biggest scandals RBS has faced in recent years.
NEW YORK/LONDON, June 13 (Reuters) - Fast-growing British digital bank Monzo is launching in the United States through a limited rollout of its app-based checking account and connected debit card, it said on Thursday. Monzo will make available a few thousand cards at in-person sign-up events over the next weeks in cities including Los Angeles, San Francisco and New York, as it seeks to replicate the word-of-mouth support that boosted its UK launch, it said. It hopes to attract an engaged early-user base which will provide feedback to help tailor the company's offering to the U.S. market, Chief Executive Tom Blomfield said in an interview.
Is The Royal Bank of Scotland Group plc (LON:RBS) a good dividend stock? How would you know? Dividend paying companies...
Britain's banks and building societies will have to charge the same amount for all overdrafts from April 2020, the Financial Conduct Authority (FCA) said on Friday, in a radical change that will raise questions about the future of free in-credit banking. The changes will make overdrafts simpler, fairer and easier to manage, protecting the millions of consumers who use overdrafts, particularly more vulnerable consumers, the watchdog said. "The overdraft market is dysfunctional, causing significant consumer harm," FCA Chief Executive Andrew Bailey said in a statement.
Britain's markets regulator has banned Terry Farr, one of six former brokers unanimously acquitted by a London jury over their role in the Libor scandal, for dishonesty and lacking integrity over so-called "wash" trades. The Financial Conduct Authority (FCA) said on Wednesday that Farr, a former Martins Broker employee, was not fit and proper to perform any job in financial services. Farr, a former manager on the Japanese yen desk at Martins, arranged nine such trades between September 2008 and August 2009, after persuading a UBS trader he could influence benchmark Libor (London interbank offered rate) interest rates.
(Reuters) - The world's biggest credit check company Experian named independent non-executive director Mike Rogers as chairman on Wednesday, replacing Don Robert who announced his departure last year. ...