RBS - The Royal Bank of Scotland Group plc

NYSE - NYSE Delayed Price. Currency in USD
5.30
+0.08 (+1.53%)
At close: 4:02PM EDT
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Previous Close5.22
Open5.42
Bid5.32 x 3000
Ask5.36 x 2900
Day's Range5.30 - 5.43
52 Week Range4.33 - 7.31
Volume4,139,845
Avg. Volume962,779
Market Cap31.932B
Beta (3Y Monthly)1.09
PE Ratio (TTM)31.93
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield0.10 (1.86%)
Ex-Dividend Date2019-08-15
1y Target EstN/A
Trade prices are not sourced from all markets
  • Bloomberg

    Just Ask Women: Banks Are Still Boys' Clubs

    (Bloomberg Opinion) -- So divergent have their fortunes been since the financial crisis, European banks tend to trail their Wall Street peers on most of the metrics investors care about. Gender diversity at the top might be the next lagging indicator.There are rare bright spots in Europe. Royal Bank of Scotland Group Plc on Friday promoted Alison Rose to chief executive officer, the first woman to run a big U.K. lender. Spain’s Banco Santander SA is chaired by Ana Botin. Cast the net a bit wider and things start to look thin.With Rose’s appointment, RBS becomes truly one of a kind. Its finance director is also a woman, Katie Murray, which is another rarity in European banking.Although no woman has run a big Wall Street outfit, some American banks have made real strides in promoting women to top management positions. They will be well-placed to make the transition to CEO soon, possibly as soon as the next round of promotions.Take JPMorgan Chase & Co. Its CEO Jamie Dimon has seen several potential male successors depart during his reign. But the bank’s operating committee is now 50% female, with women in charge of consumer lending, the company’s finances and the asset management unit. At Bank of America Corp., 40% of the leadership team is female, including the chief operating and technology officer.The statistics aren’t as compelling at Citigroup Inc., where 31% of the leadership is female, nor at Goldman Sachs Group Inc., where it’s 29%. But the contrast with Europe’s titans is still striking.At Santander 23% of managers are women, at HSBC Holdings Plc it’s 13% and it’s 15% at BNP Paribas SA. At Barclays Plc just one of its 13 executive committee members is female, while at UBS Group AG the 13-strong management team is only now gaining two more female members, bringing the total to three.Beyond the general acceptance that businesses are nicer places to work when they’re more diverse, financial returns also improve markedly the less they’re dominated by white males with privileged backgrounds. Research from Morgan Stanley shows that shares in companies with a higher degree of gender diversity outperformed less diverse peers by 3.1% per year in the past eight years (2011-2019). The U.S. bank, whose own management team could do with acting on these findings, calculated diversity by using the number of female board members, executives, managers and employees, giving each an equal weighting.The bigger cost to banks could come from losing out on money from asset managers, who are increasingly demanding diversity at their holdings as part of a shift toward more carefully targeted investment.Indeed, the substantial growth of “environmental, social and governance” investments in recent years owes a great deal to finance industry leaders. As such, their own conduct should be beyond reproach. Falling behind on diversity may be another reason for investors to favor U.S. banks over their European peers.  To contact the author of this story: Elisa Martinuzzi at emartinuzzi@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Flying Back From a Thomas Cook Holiday? Good Luck
    Bloomberg

    Flying Back From a Thomas Cook Holiday? Good Luck

    (Bloomberg Opinion) -- Off for a bit of late summer sunshine? I hope you didn’t book with Thomas Cook Group Plc. The struggling British tour operator is in last-minute discussions with lenders to try to stave off a collapse because of a funding shortfall of 200 million pounds ($250 million).A company failure would be disastrous for half a million holidaymakers. Bondholders would suffer heavy losses too if Thomas Cook agrees to swap its debt for equity, as has been proposed. Administration might be even worse as debt-owners could get nothing. It’s less of a drama for equity investors. They’ll probably be wiped out either way.  The shares fell as much as 28% on Friday to a fresh low of 3.2 pence before recovering slightly.Repatriating Thomas Cook’s customers would be a massive logistical operation. It would be embarrassing for the company and the U.K. government as about 150,000 of those affected would be Brits.Royal Bank of Scotland Group Plc is one of the lenders demanding that Thomas Cook finds another 200 million pounds in backup financing facilities before they will take part in a proposed 900 million pound capital injection intended to safeguard the company’s future. That rescue deal is being led by China’s Fosun Tourism Group, Thomas Cook’s biggest shareholder.Unless a solution is found soon, we may be confronted by TV pictures of crying babies and angry pensioners, complaining about their struggles to get home from their late summer break. As such, the company will want to avoid a collapse at all costs. As well as its worried customers, Thomas Cook employs 21,000 people and has 560 U.K. shops. Its options are limited, though.Finding someone to fund the shortfall is one possibility. Yet Fosun, which has agreed to contribute half of that 900 million pounds of rescue funds in return for 75% ownership of Thomas Cook’s tour operator and 25% of its airline, might be reluctant to stump up more. Selling off assets is another potential way out for the British company, which can trace its history back to 1841. However, big disposals are unlikely given the agreement to transfer those stakes to Fosun.The best hope is persuading RBS and the other lenders to back down on their demands, enabling the financial rescue to go ahead. But that’s a long shot too. The banks have seen Thomas Cook’s funding requirement balloon this year as its trading weakened, and they want reassurance that it can make it through the less busy winter period.Fosun could conceivably pick up Thomas Cook’s tour operator on the cheap after a collapse. But the damage would be so great to the brand that there may not be much point by then. While another rival such as Germany’s Tui AG might cherry pick some assets, it would be one of the beneficiaries of Thomas Cook’s demise anyway.Tui has had its own problems after the grounding of its Boeing  737 Max fleet. But the company has its own hotel and cruise ship brands, leaving it in a stronger position than its troubled rival. With capacity coming out of the market in the event of the Thomas Cook’s collapse, it would be even better placed.  The same can’t be said for any customers left stranded if Thomas Cook can’t find the answer to its funding problems soon. To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Barrons.com

    Royal Bank of Scotland Appoints Alison Rose as Chief Executive

    (RBS) has named Alison Rose, one of the most influential women in European finance, as its next chief executive. Rose, one of the group’s longest-serving executives and the head of its commercial and private banking division, will succeed outgoing chief executive Ross McEwan on November 1, according to a statement. Rose said: “It is a huge honor to have been appointed as the new CEO of RBS and I am looking forward to getting started.

  • Financial Times

    ‘Sure touch’ RBS chief Alison Rose faces long list of challenges

    Alison Rose’s appointment as Royal Bank of Scotland chief executive on Friday was welcomed as a milestone for the banking sector and wider City of London, as she became the first woman to lead one of the “big four” banks and made RBS the only company in the FTSE 100 with women in both of its top executive roles. When she formally starts the job in November, however, Ms Rose won’t have much time to rest on her laurels.

  • Alison Rose gets top job at RBS, first woman to lead major UK lender
    Reuters

    Alison Rose gets top job at RBS, first woman to lead major UK lender

    Royal Bank of Scotland named Alison Rose as its new chief executive on Friday, becoming the first major British lender to appoint a woman to its top job. Rose, who was widely tipped to get the role at the state-backed lender, will succeed outgoing CEO Ross McEwan on November 1. Rose has worked at the bank for 27 years and takes on the role at a pivotal time for the lender, as British banks prepare for the economic fallout if Britain leaves the European Union without a deal next month.

  • RBS Taps Alison Rose as CEO, First Woman to Run U.K. Lender
    Bloomberg

    RBS Taps Alison Rose as CEO, First Woman to Run U.K. Lender

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Royal Bank of Scotland Group Plc promoted Alison Rose to chief executive officer, making her the first woman to run one of Britain’s big four lenders.Rose, the former head of British commercial and private banking at RBS, was seen as being groomed for the role for years.She takes over on Nov. 1, set to be the U.K.’s first day outside the European Union. RBS has said the uncertainty around Brexit has taken it off course from next year’s target of 12% returns on tangible equity. Rose will also be guiding the lender out of state ownership, which has continued for more than a decade since the financial crisis.“Maintaining the safety and soundness of this bank will continue to underpin everything we do,” Rose said in the statement announcing her appointment.Rose succeeds Ross McEwan, 62, who announced his resignation in April after more than five years in the job. He will start his new job as head of National Australia Bank Ltd. on Dec. 2, the Australian lender said on Friday. Rose, meanwhile, recently became deputy head of NatWest Holdings, the U.K. retail-banking division whose finances were split off under post-crisis ring-fencing laws.“She brings extensive experience and a track record of success from her previous roles at the bank,” RBS Chairman Howard Davies said.The bank will pay Rose a base salary of 1.1 million pounds ($1.4 million), 10% more than McEwan’s base pay, which was unchanged since his appointment in 2013. She will also be eligible for share-based variable pay worth up to 1.75 times her salary. Pay at state-controlled RBS is lower than that of its competitors.RBS shares rose 1.4% to 210.9 pence in early London trading.RBS VeteranRose has worked at RBS and one of its predecessor firms, National Westminster Bank, since joining from university in 1992. The Briton, 49 years old, currently leads a domestic commercial and private banking business that generates a third of the bank’s revenue. She also helped clean up the securities unit, once one of the world’s largest, in the aftermath of the bank’s record bailout, prompted by the disastrous ABN Amro takeover.While Rose is the first woman to lead a major bank, others have headed smaller lenders, including Jayne-Anne Gadhia, who ran Virgin Money Ltd. She is also the second successive women to take a high-profile role RBS. In 2018, the bank named Katie Murray to succeed Ewen Stevenson as chief financial officer after he left to join HSBC Holdings Plc.Her biggest challenge will be to steward the lender out of state ownership. Rose is also likely to maintain McEwan’s drive to slash costs while finding growth in a U.K. market that the outgoing CEO has described as very competitive. Under McEwan, RBS finally swung to a profit in 2017 after a decade of losses, and has generated capital far greater than required by the regulators. It even announced special dividends.The bank, historically the U.K.’s largest lender to small and medium sized businesses -- Rose’s current empire -- relies heavily on its mortgage book: personal banking, which includes home loans, made about half of the bank’s net interest income last year. As the ring-fencing regime effectively traps international banks’ capital in Britain, McEwan has said that the mortgage market is witnessing unprecedented levels of competition.Rose inherits a bank that has mostly tied up the loose ends of scandals whose legacy McEwan handled during his tenure. Those include mis-sold payment protection insurance, Libor and foreign-exchange index rigging, and the mortgage-backed securities that led to a settlement with the U.S. Department of Justice.(Adds Brexit challenges in third paragraph.)To contact the reporter on this story: Stefania Spezzati in London at sspezzati@bloomberg.netTo contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Marion Dakers, Keith CampbellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Financial Times

    Opening Quote: RBS picks Rose to be its new chief as challenges mount

    one of the UK’s top banks in November, after being confirmed as the successor to the Royal Bank of Scotland chief executive Ross McEwan. The state-owned lender will also become the only company in the FTSE 100 index with women in both its top two executive positions, following Katie Murray’s appointment as chief financial officer last year. Ms Rose, who currently leads RBS’ commercial and private banking business, had long been seen as the favourite to succeed Mr McEwan.

  • Financial Times

    UK lender RBS appoints Alison Rose as chief executive

    The state-owned lender will also become the only company in the FTSE 100 index with women in both its top two executive positions, following Katie Murray’s appointment as chief financial officer last year. Howard Davies, RBS chairman, said: “I am delighted that we have appointed Alison as our new CEO. Ms Rose, who currently leads RBS’s commercial and private banking business, had long been seen as the favourite to succeed Mr McEwan, particularly after she was made deputy head of the holding company that owns most of RBS’s businesses last year.

  • Reuters

    UPDATE 2-Alison Rose gets top job at RBS, first woman to lead major UK lender

    Royal Bank of Scotland named Alison Rose as its new chief executive on Friday, becoming the first major British lender to appoint a woman to its top job. Rose, who was widely tipped to get the role at the state-backed lender, will succeed outgoing CEO Ross McEwan on November 1. Rose has worked at the bank for 27 years and takes on the role at a pivotal time for the lender, as British banks prepare for the economic fallout if Britain leaves the European Union without a deal next month.

  • Moody's

    Castell 2019-1 PLC -- Moody's assigns definitive ratings to Notes issued by Castell 2019-1 PLC

    Rating Action: Moody's assigns definitive ratings to Notes issued by Castell 2019-1 PLC. Global Credit Research- 19 Sep 2019. London, 19 September 2019-- Moody's Investors Service has assigned definitive ...

  • ETF.com

    Pacer Exploits Its Edges

    Known for its distribution role in the financial industry, the firm is exploiting its strengths to promote its unique type of ETFs.

  • Lloyds, Barclays to Make Extra Provisions for PPI Claims
    Zacks

    Lloyds, Barclays to Make Extra Provisions for PPI Claims

    Lloyds (LYG) and Barclays (BCS) are making extra provisions to be able to compensate customers, after the surge in last-minute claims related to the PPI scandal.

  • Reuters

    British banks seek tweaks to accountability rules

    Britain's new system of banker accountability has led to a "tangible" improvement in culture but modest changes are still needed, UK Finance said on Tuesday. The trade body for banks in Britain published the sector's first major appraisal of the senior managers and certification regime (SMCR) introduced in 2016 as part of reforms implemented after the 2007-09 financial crisis that left taxpayers to bail out lenders while few individual bankers faced punishment. SMCR makes it easier for regulators to pinpoint blame when things go wrong.

  • 6 Stocks Paying High Dividend Yields
    GuruFocus.com

    6 Stocks Paying High Dividend Yields

    Fiat Chrysler makes the list Continue reading...

  • Boris Johnson ‘Would Rather Be Dead’ Than Delay Split: Brexit Update
    Bloomberg

    Boris Johnson ‘Would Rather Be Dead’ Than Delay Split: Brexit Update

    (Bloomberg) -- Follow @Brexit, sign up to our Brexit Bulletin, and tell us your Brexit story. Boris Johnson’s six-week-old premiership was thrown into yet more disarray after his brother quit the government in protest at his Brexit strategy. After three days of humiliation, the beleaguered prime minister launched a fightback in a speech in northern England, appealing directly to the public for an election to resolve Britain’s political crisis. He said he would “rather be dead in a ditch” than ask the European Union to delay Brexit again.Key Developments:Minister Jo Johnson resigns, citing tension between “family loyalty and the “national interest”Johnson making appeal for election Prime Minister will try again to persuade MPs to trigger an early general election on MondayHouse of Lords debating bill to block no-deal Brexit until FridaySplits appear in cabinet over Johnson’s tacticsThe pound rose 0.6%U.K. Said to Want to Unpick Deal (6:05 p.m.)Boris Johnson wants to remove several parts of the deal that was struck between the U.K. and EU in November, according to an official briefed on Wednesday’s negotiations in Brussels.David Frost, Johnson’s envoy, told the European Commission the U.K. wants to:Remove many articles of the contentious Irish border “backstop,” leaving only provisions on citizens’ rights, the common travel area and single electricity market on the island of Ireland. He didn’t say what the U.K. wanted in its place.Take out references in the political declaration on the future relationship to the “level playing field” which would keep the U.K. aligned to many of the EU’s standards. The EU says this is necessary for an ambitious free-trade agreementChange the way the agreement would be governed to take out references to the European Court of Justice. The EU said this would affect future police and judicial cooperation.Johnson Doubles Down on Push for Oct. 15 Election (6 p.m.)Boris Johnson pledged to hold a general election on Oct. 15, or even earlier, if opposition Labour Party leader Jeremy Corbyn wants that. The prime minister was responding to a question about whether he can be trusted not to shift the date of an election in order to take the U.K. out of the EU without a deal.“We want an election on October 15 and indeed earlier if he wants: :Let’s crack on with it,” Johnson said. “If he wants to avoid a no-deal Brexit, or if he wants to avoid a hard Brexit then he should believe in himself to go to Brussels on Oct. 17 to that crucial summit and sort it out.”The premier said the current situation is unsustainable. “I really don’t see how you can have a situation in which the British ability to negotiate is absolutely torpedoed by Parliament in this way, with powers of the British people handed over to Brussels so that we can be kept incarcerated in the EU without that actually being put to the people in the form of a vote,” he said.Johnson Glosses Over Split With Brother (5:35 p.m.)Johnson was asked about his brother Jo’s decision to quit the government earlier in the day, citing a conflict between family loyalties and the national interest (see 11:30 a.m.). He glossed over questions about whether he was acting in the national interest and said “people disagree about the EU.”“Jo doesn’t agree with me about the EU because it’s an issue obviously that divides families, that divides everybody,” said Johnson, before noting that his brother supports his wider agenda for the country.The premier also said he’d spoken to his brother earlier in the day, and praised his service as a minister for science and universities.Johnson: ‘Rather be Dead’ Than Delay Brexit (5:30 p.m.)Johnson said he would “rather be dead in a ditch” than ask for a delay in Brexit beyond Oct. 31.Answering questions after a speech in northern England, Johnson said he guaranteed that he wouldn’t ask for an extension from the EU while he is prime minister. But he dodged the question when he was asked if this meant he would resign rather than sign up to another delay.Johnson Makes Plea For Election (5:18 p.m.)Johnson is making a speech at a police academy in the north of England in which he is expected to make a plea for a general election.He will also reassert his pledge to recruit 20,000 police officers and trumpet his commitment to law and order as he gets a head start in the campaign for votes.But on a stage with dozens of police officers, his surroundings may be a gift to opponents who have accused him of staging a “coup” by suspending Parliament -- and to sketch writers likely to suggest he’s taking his commitment to “taking back control” to a new level.Johnson to Meet Varadkar on Monday (4:45 p.m.)Prime Minister Boris Johnson will travel to Dublin early on Monday to meet his Irish counterpart Leo Varadkar. He’ll return to London in time to be in the House of Commons for the key vote on a general election in the evening, his spokeswoman, Alison Donnelly, told reporters.U.K. Offers Banks $1.6b to Guarantee Brexit Loans (3:45 p.m.)Business Secretary Andrea Leadsom and other senior ministers met with lenders including HSBC, Lloyds and Barclays on Thursday to encourage them to support small and medium-sized companies through Brexit.The state-backed British Business Bank has 1.3 billion pounds ($1.6 billion) available to help banks lend money to businesses that need it, the Business Department said in an emailed statement. “Lenders must empower their SME customers to seize the huge variety of opportunities that lie ahead as we leave the EU on October 3,” Leadsom said.Leadsom was joined in the meeting by Michael Gove, the cabinet minister in charge of no-deal Brexit preparations, Economic Secretary to the Treasury John Glen and Small Business Minister Kelly Tolhurst. Other lenders included Bibby Financial Services, Virgin Money, Metro Bank, RBS, Santander and TSB.Johnson Calls Corbyn ‘Chlorinated Chicken’ Again (1:15 p.m.)Boris Johnson met U.S. Vice President Mike Pence in Downing Street, and used the opportunity -- while talking about a future free-trade deal -- to make the same joke as Wednesday when he called opposition Labour leader Jeremy Corbyn a chicken because he didn’t vote for an early general election .“We will make sure we do everything we can to increase free trade,’’ Johnson told Pence. “The National Health Service is not on the table as far as our negotiations go -- we’re not too keen on that chlorinated chicken either. We have a gigantic chlorinated chicken already here on the opposition bench.”Pence said the U.S. is “ready, willing and able” to offer the U.K. a trade deal.No-Deal Bill to Get Rapid Royal Assent (1:15 p.m.)Leader of the House of Commons Jacob Rees-Mogg said that the bill passed by MPs last night blocking a no-deal Brexit will get royal assent -- come into law -- “speedily” once it is debated for the final time in the Commons on Monday. The bill is currently in the House of Lords, and is due to return to the Commons, potentially with amendments, by Friday evening.Gove Sees Johnson Resignation as Unlikely (1:05 p.m.)Michael Gove, the Cabinet minister in charge of no-deal planning, is still speaking to the House of Commons committee on Brexit. Asked whether Boris Johnson would resign rather than ask for another delay, he said: “I don’t think the prime minister has any intention of resigning.”Under legislation working its way through Parliament, Johnson would be compelled to seek a delay to Brexit if by Oct. 19 he’s failed to secure a new Brexit deal or persuade MPs to back a departure without a deal. The premier said in reaction: “I refuse to do this.” Instead, he wants a general election before then -- but MPs refused to vote for one.That means if Johnson fails to secure an election, on Oct. 19 he’d be faced with the conundrum of either writing the letter or disobeying the law.Berger: Not Clear Where She’ll Stand for Lib Dems (1 p.m.)Luciana Berger, who joined the Liberal Democrats as an MP Thursday, said it was not yet clear if she will stand in the district of Liverpool Wavertree at the next election because of the party’s localized decision-making structure. It’s “not a decision for me,’’ she told Sky News. “I’d like to remain making a contribution to public life.’’Berger quit the Labour Party in February citing anti-Semitic bullying. She has remained as an independent candidate until today. The Liverpool Wavertree district has a strong Labour history and the Liberal Democrats have already selected a candidate for the area.MPs Will Vote Again on Early Election (12:50 p.m.)Leader of the House of Commons Jacob Rees-Mogg laid out a list of motions that will be debated in the House of Commons on Monday, culminating in a “motion relating to an early parliamentary general election.”It will be a second attempt by the government to force an early general election -- the next one currently isn’t due until 2022. Late on Wednesday, Johnson tried and failed to secure the 434 votes he needs -- two thirds of the House of Commons -- to call a ballot.Opposition parties declined to approve of an election because they want a bill to pass into law that would stave off a no-deal Brexit on Oct. 31. By Monday, that bill is likely to have passed into law, and the government’s calculation is that opposition parties may then swing behind his demand for a fresh election.Rees-Mogg also said that all bills needed for the U.K. to leave the European Union are in place.Gove Says New Brexit Deal Can Be Secured (12:35 p.m.)Cabinet Office Minister Michael Gove, who’s in charge of no-deal Brexit preparations, said the changes to the Brexit agreement being sought by Johnson are “eminently achievable.’’He said that while he would support former Prime Minister Theresa May’s deal if it came back to the house of Commons for another vote, the changes Johnson is seeking would mark a “material improvement” in the deal. They are to strip out the Irish backstop, and alter the political declaration to make clear Britain would be outside the customs union and single market. He also said the U.K. wants a free-trade agreement with the bloc.Gove was giving evidence to the House of Commons Exiting the European Union Committee. He earlier said that the Operation Yellowhammer document spelling out the potential impact of a no-deal exit that was leaked to the Sunday Times last month represented a “reasonable worst-case scenario,” and not a base-case prediction. He said there was no evidence to suggest former Chancellor of the Exchequer Philip Hammond could have been behind the leak.Business Secretary to Meet With Banks (11:40 a.m.)Business Secretary Andrea Leadsom will meet later Thursday with executives from the country’s main banks to discuss their support for small and medium-sized companies through Brexit, Prime Minister Boris Johnson’s spokesman, James Slack, told reporters in London.Johnson Wants Election Before Oct. 17 EU Council (11:35 a.m.)Prime Minister Boris Johnson will say in a speech this afternoon that he wants an election before the EU council meeting on Oct. 17, his spokesman James Slack said.“The prime minister believes we should have the election before the EU council and asks MPs to reflect on the sustainability of their position,’’ Slack told reporters. “Having chosen to introduce a bill that destroys our negotiating position,’’ he said, politicians “ must take responsibility for their actions.”Johnson’s Brother Quits Over Strategy (11:30 a.m.)Boris Johnson’s own brother, Jo Johnson, said he’s quitting the government and his seat in Parliament because of differences with the prime minister.“In recent weeks I’ve been torn between family loyalty and the national interest,” Jo Johnson said on Twitter. “It’s an unresolvable tension & time for others to take on my roles as MP & Minister. overandout.”The departure is a severe blow to the prime minister at a time when he’s alienated the moderate wing of his party by expelling 21 MPs on Tuesday because they voted against the government in order to stave off the risk of a no-deal Brexit on Oct. 31.Jo Johnson is a longstanding pro-European -- and had quit as a minister under former Prime Minister Theresa May because he believed the country needed a second referendum on Brexit. It raised eyebrows when he agreed to serve in his brother’s government -- because the premier was the figurehead of the Leave campaign in the 2016 referendum.Former Labour MP Berger Joins Liberal Democrats (11 a.m.)While Johnson has been expelling MPs from his party, Parliament’s fourth party, the Liberal Democrats keep growing. Luciana Berger, who quit Labour earlier in the year, said on Thursday she’s joined the Liberal Democrats.It’s the party’s second addition of the week, after Philip Lee’s defection from the Conservatives on Tuesday deprived Johnson of his majority. They now have 16 MPs.Javid Hopes Rebels Can Return (9:30 a.m.)Chancellor of the Exchequer Sajid Javid said he wants the 21 rebels expelled from the Conservative Party on Tuesday to be reinstated, though he also added Johnson had “no choice” but to fire them.Javid’s comments follow reports of an argument in cabinet this week in which a group of senior ministers, led by no-deal Brexit minister Michael Gove, demanded that Johnson should give the rebels a way back into the party. The prime minister refused.“I would like to see those colleagues come back at some point,” Javid told LBC radio. “They are not just my colleagues; these are my friends, they are good Conservatives.”Javid said it was right for Johnson to make Tuesday’s vote -- allowing Parliament to seize the legislative timetable in order to block a no-deal Brexit -- a matter of confidence in the government. Those who voted against it knew the “consequences,” he said.Swinson Wants Extension Before Election (9 a.m.)Liberal Democrat Leader Jo Swinson said she wants a general election only after an extension to Brexit has been agreed with Brussels.She said she believes Johnson wants an election before his exit deadline of Oct. 31 so he can take the U.K. out of the EU without a deal and blame Brussels for the failure to get an agreement.“He’s frightened of being found out,” she told Sky News. “He’s got an opportunity to go and get that great deal he said he could get and get it past Parliament, but he’s frightened to do that.”Caroline Nokes, one of the MPs expelled from the Tory Party on Tuesday, also said Johnson shouldn’t rush a national vote. “It’s really cynical to try to force through an election,” she said. “The tool we need in Parliament is time.”Labour ‘Consulting’ on Election Timing (Earlier)Labour Treasury Spokesman John McDonnell said the party is consulting with its own MPs and other parties over the best timing for a general election.While some want a national vote once a law against a no-deal Brexit is enacted, others want to wait until after a further delay to Jan. 31 has been secured before going to the country. None of the opposition parties have any confidence that Johnson will keep to his word, he said in media interviews on Thursday morning.“We have to be the adults in the room,” McDonnell said, after comparing Johnson to a toddler having a tantrum. Labour wants to keep “as much control as we possibly over the date of that election,” he told Sky News.Earlier:Johnson Boxed In Over Brexit as Bill Is Pushed Through LordsPound Rally Stalls After Lawmakers Reject Johnson’s Brexit PlansBrussels Edition: No Deal for Boris\--With assistance from Justin Sink, Ian Wishart and Thomas Penny.To contact the reporters on this story: Alex Morales in London at amorales2@bloomberg.net;Kitty Donaldson in London at kdonaldson1@bloomberg.net;Jessica Shankleman in Wakefield at jshankleman@bloomberg.netTo contact the editors responsible for this story: Tim Ross at tross54@bloomberg.net, Stuart Biggs, Mark WilliamsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Royal Bank of Scotland to Face New PPI Claims of About GBP900M
    Zacks

    Royal Bank of Scotland to Face New PPI Claims of About GBP900M

    Royal Bank of Scotland (RBS) might record additional GBP600 million to GBP900 million as PPI claims, exceeding August expectations.

  • RBS Bill for PPI Tops £6 Billion After New Provision
    Bloomberg

    RBS Bill for PPI Tops £6 Billion After New Provision

    (Bloomberg) -- Two major U.K. lenders warned that a last-minute rush by compensation-seeking customers will make the most expensive scandal in British banking even costlier.Royal Bank of Scotland Group Plc said Wednesday it plans to set aside as much as 900 million pounds ($1.1 billion) more for claims related to payment protection insurance, or PPI, that customers didn’t want or need. The lender was followed hours later by CYBG Plc, the owner of the Virgin Money brand, which warned that it expects a “material” spike in costs.CYBG said that it had received “unprecedented volumes of information requests and saw a significant spike in the final days prior to the complaint deadline,” which was Aug. 29. 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.The update from RBS takes the state-backed lender’s total bill for PPI compensation to about 6.2 billion pounds. RBS said the volume of claims received during August was significantly higher than expected and the preliminary range for the latest provision is between 600 million pounds and 900 million pounds, though it could be less or more than that total. CYBG, which said it’s still working on determining the final cost of the August surge, had previously set aside almost 2.7 billion pounds for redress. Just 156 million pounds of that sum hadn’t been paid out as of the end of March.The news comes at a challenging time for RBS as it searches for a replacement for outgoing Chief Executive Officer Ross McEwan. The bank is also contending with the economic jitters from Brexit, blaming an “uncertain and competitive environment” last quarter for net interest income that missed analysts’ estimates.In July, Lloyds Banking Group Plc, the country’s biggest mortgage lender, took a similar charge as customers rushed to meet the PPI deadline. Banks paid 35.7 billion pounds to PPI customers between January 2011 and May this year, according to the Financial Conduct Authority.CYBG shares slid as much as 4 percent before recouping much of that loss in early afternoon trading. RBS shares rose 1 percent, broadly in line with other U.K. banks.To contact the reporters on this story: Viren Vaghela in London at vvaghela1@bloomberg.net;Harry Wilson in London at hwilson57@bloomberg.netTo contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Keith Campbell, Marion DakersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • RBS may face new PPI hit of up to 900 million pounds
    Reuters

    RBS may face new PPI hit of up to 900 million pounds

    Britain's Royal Bank of Scotland may have to shell out a further 900 million pounds ($1.1 billion) to settle a final compensation bill for mis-selling payment protection insurance after a last-minute surge in customer claims. The news gives credence to recent comments by industry experts that Britain's most costly consumer banking scandal could yet have a sting in the tail even after an August 29 deadline for claiming compensation. Separately on Wednesday, rival Clydesdale Bank (CYBG), which also owns the Yorkshire Bank and Virgin Money brands, said it had also received "unprecedented volumes" of requests for information from customers in the run-up to the complaints deadline.

  • Moody's

    Castell 2019-1 PLC -- Moody's assigns provisional ratings to Notes to be issued by Castell 2019-1 PLC

    Rating Action: Moody's assigns provisional ratings to Notes to be issued by Castell 2019-1 PLC. Global Credit Research- 03 Sep 2019. London, 03 September 2019-- Moody's Investors Service has assigned provisional ...

  • Reuters

    Britain's banks face 25% earnings hit from no-deal Brexit -Citigroup

    Britain's banks face a hit of up 25% to their earnings if Britain crashes out of the European Union without a deal, analysts at Citigroup said in a research note. The economic slowdown that would result from a no-deal Brexit, as well as the likelihood of lower interest rates and borrowers defaulting on loans, would hit earnings per share by between 15 to 25%, the analysts at Citi wrote in the note published on Thursday.

  • UK competition watchdog reprimands RBS, Santander over PPI procedures
    Reuters

    UK competition watchdog reprimands RBS, Santander over PPI procedures

    Britain's competition watchdog has ordered Royal Bank of Scotland and Santander to appoint auditors to check how they remind customers who have payment protection insurance (PPI), amid a mis-selling scandal over the policies. The two banks failed to adequately remind customers about their PPI, some of whom might be due compensation as a result of Britain's biggest ever consumer banking controversy, in which more than 36 billion pounds ($44 billion) has been paid back to those affected. Both previously breached an order by the Competition and Markets Authority (CMA) requiring banks to send annual reminders to customers about PPI, the CMA said.

  • Reuters

    PRESS DIGEST- British Business - Aug 21

    The following are the top stories on the business pages of British newspapers. - Prime Minister Boris Johnson will tell German Chancellor Angela Merkel on Wednesday that parliament cannot stop Britain leaving the European Union without a deal on Oct. 31. - The Hong Kong investor buying Greene King is under pressure to provide further assurances that it will not cut jobs.