Loading...

Royal Bank of Scotland Group

LSE:RBS
Snowflake Description

Adequate balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RBS
LSE
£32B
Market Cap
  1. Home
  2. GB
  3. Banks
Company description

The Royal Bank of Scotland Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers worldwide. The last earnings update was 65 days ago. More info.


Add to Portfolio Compare Print
RBS Share Price and Events
7 Day Returns
0.7%
LSE:RBS
1%
GB Banks
0.6%
GB Market
1 Year Returns
-4.3%
LSE:RBS
-8.7%
GB Banks
1.1%
GB Market
RBS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Royal Bank of Scotland Group (RBS) 0.7% 5.7% 8.5% -4.3% 4.3% -13.5%
GB Banks 1% 5.4% 4.4% -8.7% 17% -11.2%
GB Market 0.6% 1.9% 6.9% 1.1% 15.6% 6.2%
1 Year Return vs Industry and Market
  • RBS outperformed the Banks industry which returned -8.7% over the past year.
  • RBS underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.1% over the past year.
Price Volatility
RBS
Industry
5yr Volatility vs Market

RBS Value

 Is Royal Bank of Scotland Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Royal Bank of Scotland Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Royal Bank of Scotland Group.

LSE:RBS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 13 analysts.
= Stable Book Value * Return on Equity
= £3.55 * 8.4%
£0.30
Book Value of Equity per Share Weighted future Book Value estimates from 11 analysts. £3.55
Discount Rate (Cost of Equity) See below 14.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:RBS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.593 (1 + (1- 19%) (579.33%))
2.592
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (2 * 6.65%)
14.53%

Discounted Cash Flow Calculation for LSE:RBS using Excess Returns Model Model

The calculations below outline how an intrinsic value for Royal Bank of Scotland Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:RBS Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (8.4% – 14.53%) * £3.55)
£-0.22
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £-0.22 / (14.53% - 1.23%)
£-1.63
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £3.55 + £-1.63
£1.91
LSE:RBS Discount to Share Price
Calculation Result
Value per share (GBP) From above. £1.91
Current discount Discount to share price of £2.62
= -1 x (£2.62 - £1.91) / £1.91
-37%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Royal Bank of Scotland Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Royal Bank of Scotland Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Royal Bank of Scotland Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:RBS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.14
LSE:RBS Share Price ** LSE (2019-04-18) in GBP £2.62
United Kingdom of Great Britain and Northern Ireland Banks Industry PE Ratio Median Figure of 15 Publicly-Listed Banks Companies 10.35x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Royal Bank of Scotland Group.

LSE:RBS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:RBS Share Price ÷ EPS (both in GBP)

= 2.62 ÷ 0.14

19.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Royal Bank of Scotland Group is overvalued based on earnings compared to the GB Banks industry average.
  • Royal Bank of Scotland Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Royal Bank of Scotland Group's expected growth come at a high price?
Raw Data
LSE:RBS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
22.2%per year
United Kingdom of Great Britain and Northern Ireland Banks Industry PEG Ratio Median Figure of 14 Publicly-Listed Banks Companies 0.86x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:RBS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.43x ÷ 22.2%

0.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Royal Bank of Scotland Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Royal Bank of Scotland Group's assets?
Raw Data
LSE:RBS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £3.80
LSE:RBS Share Price * LSE (2019-04-18) in GBP £2.62
United Kingdom of Great Britain and Northern Ireland Banks Industry PB Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.88x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:RBS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:RBS Share Price ÷ Book Value per Share (both in GBP)

= 2.62 ÷ 3.80

0.69x

* Primary Listing of Royal Bank of Scotland Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Royal Bank of Scotland Group is good value based on assets compared to the GB Banks industry average.
X
Value checks
We assess Royal Bank of Scotland Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Royal Bank of Scotland Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RBS Future Performance

 How is Royal Bank of Scotland Group expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Royal Bank of Scotland Group expected to grow at an attractive rate?
  • Royal Bank of Scotland Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Royal Bank of Scotland Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Royal Bank of Scotland Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:RBS Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:RBS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 22.2%
LSE:RBS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 1.9%
United Kingdom of Great Britain and Northern Ireland Banks Industry Earnings Growth Rate Market Cap Weighted Average 12.7%
United Kingdom of Great Britain and Northern Ireland Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:RBS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:RBS Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 13,381 3,557 3
2021-12-31 13,493 3,466 18
2020-12-31 13,191 3,261 18
2019-12-31 12,937 2,027 19
LSE:RBS Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 12,647 7,936 1,622
2018-09-30 12,800 757
2018-06-30 12,412 -7,229 701
2018-03-31 12,721 1,285
2017-12-31 12,647 13,292 752
2017-09-30 13,125 -3,110
2017-06-30 13,274 25,490 -3,971
2017-03-31 12,572 -5,728
2016-12-31 12,238 -14,068 -6,955
2016-09-30 12,020 -5,344
2016-06-30 12,119 26,020 -5,028
2016-03-31 13,104 -4,345

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Royal Bank of Scotland Group's earnings are expected to grow significantly at over 20% yearly.
  • Royal Bank of Scotland Group's revenue is expected to grow by 1.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:RBS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Royal Bank of Scotland Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:RBS Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.34 0.35 0.32 3.00
2021-12-31 0.34 0.42 0.30 12.00
2020-12-31 0.30 0.33 0.27 13.00
2019-12-31 0.17 0.23 0.14 14.00
LSE:RBS Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.14
2018-09-30 0.06
2018-06-30 0.06
2018-03-31 0.11
2017-12-31 0.06
2017-09-30 -0.26
2017-06-30 -0.34
2017-03-31 -0.49
2016-12-31 -0.59
2016-09-30 -0.46
2016-06-30 -0.43
2016-03-31 -0.38

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Royal Bank of Scotland Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Royal Bank of Scotland Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Royal Bank of Scotland Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RBS Past Performance

  How has Royal Bank of Scotland Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Royal Bank of Scotland Group's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Royal Bank of Scotland Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Royal Bank of Scotland Group's 1-year earnings growth exceeds its 5-year average (115.7% vs 39.7%)
  • Royal Bank of Scotland Group's earnings growth has exceeded the GB Banks industry average in the past year (115.7% vs 42.2%).
Earnings and Revenue History
Royal Bank of Scotland Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Royal Bank of Scotland Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:RBS Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 12,647.00 1,622.00 9,849.00
2018-09-30 12,800.00 757.00 8,857.00
2018-06-30 12,412.00 701.00 8,555.00
2018-03-31 12,721.00 1,285.00 8,229.00
2017-12-31 12,647.00 752.00 10,372.00
2017-09-30 13,125.00 -3,110.00 11,956.00
2017-06-30 13,274.00 -3,971.00 12,728.00
2017-03-31 12,572.00 -5,728.00 14,005.00
2016-12-31 12,238.00 -6,955.00 16,035.00
2016-09-30 12,020.00 -5,344.00 10,853.00
2016-06-30 12,119.00 -5,028.00 10,371.00
2016-03-31 13,104.00 -4,345.00 9,385.00
2015-12-31 13,911.00 -3,520.00 12,849.00
2015-09-30 14,499.00 -2,599.00 12,259.00
2015-06-30 15,720.00 -1,667.00 13,046.00
2015-03-31 15,766.00 -1,250.00 13,170.00
2014-12-31 16,507.00 -25.00 12,429.00
2014-09-30 9,383.00 -7,243.00 10,938.00
2014-06-30 8,140.00 -8,845.00 11,397.00
2014-03-31 8,633.00 -8,735.00 12,597.00
2013-12-31 8,723.00 -9,553.00 15,544.00
2013-09-30 15,413.00 -2,699.00 16,558.00
2013-06-30 15,099.00 -3,348.00 16,356.00
2013-03-31 14,553.00 -3,981.00 15,833.00
2012-12-31 9,404.00 -6,373.00 14,217.00
2012-09-30 8,037.00 -5,719.00 15,083.00
2012-06-30 11,997.00 -3,027.00 14,134.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Royal Bank of Scotland Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Royal Bank of Scotland Group used its assets less efficiently than the GB Banks industry average last year based on Return on Assets.
  • Unable to establish if Royal Bank of Scotland Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Royal Bank of Scotland Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Royal Bank of Scotland Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RBS Health

 How is Royal Bank of Scotland Group's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Royal Bank of Scotland Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Royal Bank of Scotland Group Company Filings, last reported 3 months ago.

LSE:RBS Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 46,490.00 183,667.00 283,083.00
2018-09-30 48,667.00 215,847.00 286,509.00
2018-06-30 48,491.00 235,124.00 310,742.00
2018-03-31 49,552.00 228,960.00 298,728.00
2017-12-31 49,093.00 207,188.00 333,598.00
2017-09-30 49,474.00 250,634.00 313,273.00
2017-06-30 50,049.00 273,920.00 341,053.00
2017-03-31 49,511.00 284,867.00 353,176.00
2016-12-31 49,404.00 315,474.00 397,805.00
2016-09-30 54,328.00 359,291.00 417,999.00
2016-06-30 53,727.00 410,532.00 458,871.00
2016-03-31 54,165.00 394,265.00 445,951.00
2015-12-31 54,147.00 343,229.00 425,108.00
2015-09-30 58,247.00 389,804.00 447,720.00
2015-06-30 61,769.00 401,453.00 452,077.00
2015-03-31 62,281.00 523,298.00 560,488.00
2014-12-31 58,709.00 485,624.00 558,123.00
2014-09-30 64,838.00 463,361.00 486,502.00
2014-06-30 60,963.00 437,245.00 510,078.00
2014-03-31 60,936.00 449,176.00 516,410.00
2013-12-31 59,215.00 463,568.00 527,505.00
2013-09-30 68,130.00 520,349.00 534,900.00
2013-06-30 69,658.00 600,046.00 592,829.00
2013-03-31 71,165.00 678,642.00 656,283.00
2012-12-31 70,448.00 688,070.00 733,676.00
2012-09-30 73,893.00 734,331.00 772,122.00
2012-06-30 75,216.00 754,271.00 794,610.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Royal Bank of Scotland Group has an acceptable proportion of non-loan assets held.
  • Royal Bank of Scotland Group's liabilities are made up of primarily low risk sources of funding.
  • Loans at Royal Bank of Scotland Group are broadly funded by customer deposits.
  • Royal Bank of Scotland Group's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Royal Bank of Scotland Group has a low allowance for bad loans.
  • Royal Bank of Scotland Group has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess Royal Bank of Scotland Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Royal Bank of Scotland Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RBS Dividends

 What is Royal Bank of Scotland Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.67%
Current annual income from Royal Bank of Scotland Group dividends. Estimated to be 5.96% next year.
If you bought £2,000 of Royal Bank of Scotland Group shares you are expected to receive £53 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Royal Bank of Scotland Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • Royal Bank of Scotland Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:RBS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Banks Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 4.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:RBS Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.15 3.00
2021-12-31 0.17 19.00
2020-12-31 0.16 20.00
2019-12-31 0.13 17.00
LSE:RBS Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-04-01 0.070 2.735
2018-10-26 0.040 1.699
2018-08-14 0.040 1.630
2010-03-10 0.000 0.000
2009-11-06 0.000 0.000
2009-10-30 0.000 0.000
2009-09-30 0.000 0.000
2009-08-07 0.000 0.000
2009-05-13 0.000 0.000
2009-04-22 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Royal Bank of Scotland Group has stable dividend payments.
  • Royal Bank of Scotland Group only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Royal Bank of Scotland Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Royal Bank of Scotland Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Royal Bank of Scotland Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Royal Bank of Scotland Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RBS Management

 What is the CEO of Royal Bank of Scotland Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ross McEwan
COMPENSATION £3,578,000
AGE 61
TENURE AS CEO 5.5 years
CEO Bio

Mr. Ross Maxwell McEwan, B.B.S. has been the Group Chief Executive Officer of The Royal Bank of Scotland Group Plc since October 1, 2013 and serves as Executive Director. Mr. McEwan serves as Director of Royal Bank of Scotland plc (formerly known as Adam & Company Plc) since April 27, 2018. Mr. McEwan serves as Chief Executive Officer of Ulster Bank Ltd. and also has been its Executive Director since July 28, 2017. He had served as Group Chief Executive Officer of NatWest Markets Plc (formerly known as Royal Bank of Scotland Plc). He serves as Chief Executive Officer of National Westminster Bank plc. He had served as Director of NatWest Markets Plc until April 30, 2018. He served as the Chief Executive of UK Retail of The Royal Bank of Scotland Group plc from August 2012 to October 1, 2013 and also served as it’s served as Head of The Institution's Retail Arm since May 2012. Mr. McEwan joined RBS in August 2012. He served as the Chief Executive Officer and Executive General Manager of Commonwealth Bank of Australia and its Group Executive of Retail Banking Services from May 14, 2007 to July 31, 2012. Mr. McEwan served as Head of Retail Banking & Marketing at ASB Bank Limited. He has 25 years of experience in insurance and investment industries. He served as Managing Director of stock broking business First NZ Capital Securities and Chief Executive of National Mutual Life Association of Australasia Ltd/AXA New Zealand Ltd. He has been an Executive Director at The Royal Bank of Scotland plc, The Royal Bank of Scotland Group plc and National Westminster Bank plc since October 1, 2013. He served as an Executive Director of Commonwealth Bank of Australia since July 31, 2012. He served as a Director of ASB Bank Limited since October 2008. He served as a Director of Preferred Capital Limited from June 18, 2007 to February 2010. Mr. McEwan holds a Bachelor of Business Studies from Massey University, majoring in Industrial Relations and Personnel Management.

CEO Compensation
  • Ross's compensation has been consistent with company performance over the past year.
  • Ross's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Royal Bank of Scotland Group management team in years:

3
Average Tenure
53.5
Average Age
  • The tenure for the Royal Bank of Scotland Group management team is about average.
Management Team

Ross McEwan

TITLE
CEO & Executive Director
COMPENSATION
£4M
AGE
61
TENURE
5.5 yrs

Katie Murray

TITLE
CFO & Executive Director
AGE
49
TENURE
0.6 yrs

Mark Bailie

TITLE
Chief Operating Officer
AGE
45
TENURE
3 yrs

Richard Fisher

TITLE
Chief Accountant

Simon McNamara

TITLE
Chief Administrative Officer
AGE
58
TENURE
5.6 yrs

Matt Waymark

TITLE
Head of Investor Relations

Michael Shaw

TITLE
Chief of Legal
TENURE
3 yrs

David Wheldon

TITLE
Chief Marketing Officer
TENURE
3.8 yrs

Helen Cook

TITLE
Chief HR Officer
TENURE
2 yrs

Charles Harris

TITLE
Global Head of Property Derivatives
Board of Directors Tenure

Average tenure and age of the Royal Bank of Scotland Group board of directors in years:

5.2
Average Tenure
62
Average Age
  • The tenure for the Royal Bank of Scotland Group board of directors is about average.
Board of Directors

Howard Davies

TITLE
Chairman of the Board
COMPENSATION
£761K
AGE
67
TENURE
3.6 yrs

Ross McEwan

TITLE
CEO & Executive Director
COMPENSATION
£4M
AGE
61
TENURE
5.5 yrs

Katie Murray

TITLE
CFO & Executive Director
AGE
49
TENURE
0.3 yrs

Bruce Van Saun

TITLE
Head of RBS Americas
COMPENSATION
£992K
AGE
61
TENURE
5.5 yrs

Malcolm Buchanan

TITLE
Managing Director of Corporate & Commercial Banking In Scotland and Chair of Scotland Board
TENURE
3.4 yrs

Alison Davis

TITLE
Non-Executive Director
COMPENSATION
£226K
AGE
57
TENURE
7.7 yrs

Sheila Noakes

TITLE
Independent Non-Executive Director
COMPENSATION
£234K
AGE
68
TENURE
7.7 yrs

Robert Andrew Gillespie

TITLE
Independent Non-Executive Director
COMPENSATION
£227K
AGE
63
TENURE
5.3 yrs

Mark Seligman

TITLE
Senior Independent Director
COMPENSATION
£176K
AGE
62
TENURE
1.3 yrs

Morten Friis

TITLE
Non-Executive Director
COMPENSATION
£192K
AGE
65
TENURE
5 yrs
Who owns this company?
Recent Insider Trading
  • Royal Bank of Scotland Group insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
01. Apr 19 Buy Christopher Marks Individual 28. Mar 19 28. Mar 19 60 £2.50 £150
01. Apr 19 Buy Katie Murray Individual 28. Mar 19 28. Mar 19 60 £2.50 £150
22. Feb 19 Sell Christopher Marks Individual 21. Feb 19 21. Feb 19 -260,000 £2.53 £-657,020
29. Jan 19 Buy Christopher Marks Individual 28. Jan 19 28. Jan 19 62 £2.41 £150
30. Nov 18 Buy Christopher Marks Individual 28. Nov 18 28. Nov 18 68 £2.22 £151
30. Oct 18 Buy Ross McEwan Individual 30. Oct 18 30. Oct 18 99,458 £2.30 £228,853
30. Oct 18 Buy Howard Davies Individual 29. Oct 18 29. Oct 18 39,000 £2.31 £90,129
14. May 18 Sell Ross McEwan Individual 11. May 18 11. May 18 -86,832 £2.94 £-255,373
14. May 18 Sell Ewen Stevenson Individual 11. May 18 11. May 18 -69,466 £2.94 £-204,300
01. May 18 Buy Michael Rogers Individual 30. Apr 18 30. Apr 18 20,000 £2.70 £53,900
X
Management checks
We assess Royal Bank of Scotland Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Royal Bank of Scotland Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RBS News

Simply Wall St News

Read This Before Buying The Royal Bank of Scotland Group plc (LON:RBS) Shares

So shareholders might well want to know whether insiders have been buying or selling shares in The Royal Bank of Scotland Group plc (LON:RBS). … The Last 12 Months Of Insider Transactions At Royal Bank of Scotland Group. … All up, insiders sold more shares in Royal Bank of Scotland Group than they bought, over the last year

Simply Wall St -

Is The Royal Bank of Scotland Group plc (LON:RBS) An Attractive Dividend Stock?

The Royal Bank of Scotland Group plc (LON:RBS) has begun paying dividends recently. … Let's take a look at Royal Bank of Scotland Group in more detail. … See our latest analysis for Royal Bank of Scotland Group

Simply Wall St -

Should You Be Concerned About The Royal Bank of Scotland Group plc’s (LON:RBS) Liquidity?

As a large-cap stock with market capitalization of UK£30b, The Royal Bank of Scotland Group plc (LON:RBS) falls into this category. … As a large bank in GBP, RBS is exposed to strict regulation which has focused investor attention on the type and level of risks it is subjected to, and higher scrutiny on its risk-taking behaviour. … Investors should be more cautious when it comes to financial stocks given the different type of risk to which they are exposed.

Simply Wall St -

Should You Be Concerned About The Royal Bank of Scotland Group plc’s (LON:RBS) Risk Exposure?

As a large, commercial bank with a UK£31b market capitalisation, The Royal Bank of Scotland Group plc (LON:RBS) takes on risky loans by nature of its operations and incurs credit risk. … Large commercial banks like Bank of America, Wells Fargo Bank and JP Morgan Chase had lending portfolios that were exposed to the turbulent credit market during the 2008 recession which led to billion dollar losses in shareholder equity. … Since the level of risky assets held by Royal Bank of Scotland Group impacts its cash flow and therefore the attractiveness of its stock as an investment, I will take you through three metrics that are insightful proxies for risk.

Simply Wall St -

Introducing Royal Bank of Scotland Group, The Stock That Dropped 19% In The Last Five Years

While not a mind-blowing move, it is good to see that the The Royal Bank of Scotland Group plc (LON:RBS) share price has gained 21% in the last three months. … View our latest analysis for Royal Bank of Scotland Group. … During five years of share price growth, Royal Bank of Scotland Group moved from a loss to profitability.

Simply Wall St -

Should You Investigate The Royal Bank of Scotland Group plc (LON:RBS) At UK£2.48?

The Royal Bank of Scotland Group plc (LON:RBS). … saw a significant share price rise of over 20% in the past couple of months on the LSE … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price.

Simply Wall St -

Should You Worry About The Royal Bank of Scotland Group plc's (LON:RBS) CEO Pay Cheque?

Ross McEwan became the CEO of The Royal Bank of Scotland Group plc (LON:RBS) in 2013. … This analysis aims first to contrast CEO compensation with other large companies. … View our latest analysis for Royal Bank of Scotland Group

Simply Wall St -

Did The Royal Bank of Scotland Group plc (LON:RBS) Create Value For Investors Over The Past Year?

and want a simplistic look at the return on The Royal Bank of Scotland Group plc (LON:RBS) stock. … The Royal Bank of Scotland Group plc (LON:RBS) delivered a less impressive 3.86% ROE over the past year, compared to the 7.99% return generated by its industry. … Knowing these components can change your views on RBS's below-average returns

Simply Wall St -

What You Should Know About The Royal Bank of Scotland Group plc’s (LON:RBS) Liquidity

The Royal Bank of Scotland Group plc (LON:RBS) is a large-cap stock operating in the financial services sector with a market cap of UK£29.93b. … As major financial institutions return to health after the Global Financial Crisis, we are seeing an increase in market confidence, and understanding of, these “too-big-to-fail” banking stocks. … Following the crisis, a set of reforms termed Basel III was enforced to bolster risk management, regulation, and supervision in the financial services industry.

Simply Wall St -

What Is The Royal Bank of Scotland Group plc's (LON:RBS) Share Price Doing?

The Royal Bank of Scotland Group plc (LON:RBS). … A question to answer is whether Royal Bank of Scotland Group's current trading price of £2.55 reflective of the actual value of the? … Let’s take a look at Royal Bank of Scotland Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

RBS Company Info

Description

The Royal Bank of Scotland Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers worldwide. It operates through Personal & Business Banking, Commercial & Private Banking, RBS International, and NatWest Markets segments. The company also offers wealth management, financial planning, investment management, asset finance, and offshore banking; and financing and risk solutions, as well as trading and flow sales services. The Royal Bank of Scotland Group plc was founded in 1727 and is headquartered in Edinburgh, the United Kingdom.

Details
Name: The Royal Bank of Scotland Group plc
RBS
Exchange: LSE
Founded: 1727
£31,703,294,067
12,082,048,044
Website: http://www.rbs.com
Address: The Royal Bank of Scotland Group plc
Gogarburn,
PO Box 1000,
Edinburgh,
Lothian, EH12 1HQ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE RBS Ordinary Shares London Stock Exchange GB GBP 04. Sep 1989
OTCPK RBSP.F Ordinary Shares Pink Sheets LLC US USD 04. Sep 1989
DB RYS1 Ordinary Shares Deutsche Boerse AG DE EUR 04. Sep 1989
SWX RBS Ordinary Shares SIX Swiss Exchange CH CHF 04. Sep 1989
BATS-CHIXE RBSL Ordinary Shares BATS 'Chi-X Europe' GB GBP 04. Sep 1989
NYSE RBS ADR EACH REPR 2 ORD GBP0.25 New York Stock Exchange US USD 11. Oct 2007
NYSE RBS PRFCL SPON ADR F New York Stock Exchange US USD 16. Apr 1997
NYSE RBS PRRCL ADR PREF SHS R New York Stock Exchange US USD 03. Jan 2007
DB RYS2 ADR EACH REPR 2 ORD GBP0.25 Deutsche Boerse AG DE EUR 11. Oct 2007
DB A0TKTZ PERP SR -U NT Deutsche Boerse AG DE EUR 03. Oct 2007
Number of employees
Current staff
Staff numbers
67,400
Royal Bank of Scotland Group employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/21 20:34
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.