LSE:RBS

Stock Analysis Report

Royal Bank of Scotland Group

Executive Summary

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.

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Royal Bank of Scotland Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.3%

RBS

0.4%

GB Banks

0.4%

GB Market


1 Year Return

-18.7%

RBS

-11.0%

GB Banks

-0.9%

GB Market

RBS underperformed the Banks industry which returned -11% over the past year.

RBS underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -0.9% over the past year.


Share holder returns

RBSIndustryMarket
7 Day2.3%0.4%0.4%
30 Day17.4%5.9%4.4%
90 Day-1.0%-4.5%0.5%
1 Year-8.7%-18.7%-5.5%-11.0%3.9%-0.9%
3 Year32.3%16.9%12.8%-1.3%20.5%6.1%
5 Year-33.3%-41.1%-3.5%-22.3%33.2%5.1%

Price Volatility Vs. Market

How volatile is Royal Bank of Scotland Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

2 months ago | Simply Wall St

Some Royal Bank of Scotland Group (LON:RBS) Shareholders Are Down 33%

Valuation

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

21%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Royal Bank of Scotland Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Royal Bank of Scotland Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Royal Bank of Scotland Group is overvalued based on earnings compared to the GB Banks industry average.

Royal Bank of Scotland Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Royal Bank of Scotland Group is poor value based on expected growth next year.


Price Based on Value of Assets

Royal Bank of Scotland Group is good value based on assets compared to the GB Banks industry average.


Next Steps

Future Growth

How is Royal Bank of Scotland Group expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Royal Bank of Scotland Group's revenue is expected to grow by 0.5% yearly, however this is not considered high growth (20% yearly).

Royal Bank of Scotland Group's earnings are expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).

Royal Bank of Scotland Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Royal Bank of Scotland Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Royal Bank of Scotland Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Royal Bank of Scotland Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

44.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (295.4% vs 44%)

Royal Bank of Scotland Group's earnings growth has exceeded the GB Banks industry average in the past year (295.4% vs 32.3%).


Return on Equity

Royal Bank of Scotland Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Royal Bank of Scotland Group used its assets less efficiently than the GB Banks industry average last year based on Return on Assets.


Return on Capital Employed

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.


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Information is not available.

Information is not available.


Financial Institutions Analysis

Royal Bank of Scotland Group has an acceptable proportion of non-loan assets held.

Royal Bank of Scotland Group has a low allowance for bad loans.

Royal Bank of Scotland Group's liabilities are made up of primarily low risk sources of funding.

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).

Loans at Royal Bank of Scotland Group are broadly funded by customer deposits.

Royal Bank of Scotland Group has a high level of bad loans (greater than 2%).


Next Steps

Dividend

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

8.18%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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 (2.02%).

Royal Bank of Scotland Group's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.44%).

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

Dividends paid are well covered by earnings (4.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


Next Steps

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?

3.4yrs

Average management tenure


CEO

Ross McEwan (62yo)

5.9yrs

Tenure

UK£3,578,000

Compensation

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 joined Royal Bank of Sc ...


CEO Compensation Analysis

Ross's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Ross's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.4yrs

Average Tenure

54.5yo

Average Age

The tenure for the Royal Bank of Scotland Group management team is about average.


Board Age and Tenure

4.9yrs

Average Tenure

62yo

Average Age

The tenure for the Royal Bank of Scotland Group board of directors is about average.


Insider Trading

Royal Bank of Scotland Group individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£35,22414 Aug 19
Bruce Fletcher
EntityIndividual
Shares17,369
Max PriceUK£2.03
SellUK£49,90114 Aug 19
Alison Rose-Slade
EntityIndividual
Shares24,606
Max PriceUK£2.03
SellUK£29,35514 Aug 19
Vanessa Bailey
EntityIndividual
Shares14,475
Max PriceUK£2.03
SellUK£46,96614 Aug 19
Mark Bailie
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares23,159
Max PriceUK£2.03
SellUK£13,21014 Aug 19
David Wheldon
EntityIndividual
Role
Head of Marketing
Chief Marketing Officer
Shares6,514
Max PriceUK£2.03
SellUK£35,97514 Aug 19
Lesile Matheson
EntityIndividual
Shares17,739
Max PriceUK£2.03
SellUK£14,38514 Aug 19
Helen Cook
EntityIndividual
Role
Head of Human Resources
Chief HR Officer
Shares7,093
Max PriceUK£2.03
SellUK£58,70914 Aug 19
Christopher Marks
EntityIndividual
Shares28,949
Max PriceUK£2.03
SellUK£38,97214 Aug 19
Simon McNamara
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares19,217
Max PriceUK£2.03
BuyUK£15001 Apr 19
Katie Murray
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares60
Max PriceUK£2.50
BuyUK£15001 Apr 19
Christopher Marks
EntityIndividual
Shares60
Max PriceUK£2.50
SellUK£657,02022 Feb 19
Christopher Marks
EntityIndividual
Shares260,000
Max PriceUK£2.53
BuyUK£15029 Jan 19
Christopher Marks
EntityIndividual
Shares62
Max PriceUK£2.41
BuyUK£15130 Nov 18
Christopher Marks
EntityIndividual
Shares68
Max PriceUK£2.22
BuyUK£228,85330 Oct 18
Ross McEwan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares99,458
Max PriceUK£2.30
BuyUK£90,12930 Oct 18
Howard Davies
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares39,000
Max PriceUK£2.31

Ownership Breakdown


Management Team

  • Mark Bailie (46yo)

    Chief Operating Officer

    • Tenure: 3.4yrs
  • David Wheldon

    Chief Marketing Officer

    • Tenure: 4.2yrs
  • Charles Harris

    Global Head of Property Derivatives

    • Tenure: 0yrs
  • Ross McEwan (62yo)

    CEO & Executive Director

    • Tenure: 5.9yrs
    • Compensation: UK£3.58m
  • Michael Shaw

    Chief of Legal

    • Tenure: 3.4yrs
  • Katie Murray (50yo)

    CFO & Executive Director

    • Tenure: 0.7yrs
  • Simon McNamara (59yo)

    Chief Administrative Officer

    • Tenure: 6yrs
  • Helen Cook

    Chief HR Officer

    • Tenure: 2.4yrs
  • Richard Fisher

    Chief Accountant

    • Tenure: 0yrs
  • Alexander Holcroft

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Bruce Van Saun (62yo)

    Head of RBS Americas

    • Tenure: 5.9yrs
    • Compensation: UK£992.00k
  • Mark Seligman (63yo)

    Senior Independent Director

    • Tenure: 1.7yrs
    • Compensation: UK£176.00k
  • Sheila Noakes (69yo)

    Non-Executive Director

    • Tenure: 8.1yrs
    • Compensation: UK£234.00k
  • Robert Andrew Gillespie (64yo)

    Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: UK£227.00k
  • Howard Davies (68yo)

    Chairman of the Board

    • Tenure: 4yrs
    • Compensation: UK£761.00k
  • Patrick Flynn (59yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£110.00k
  • Alison Davis (58yo)

    Non-Executive Director

    • Tenure: 8.1yrs
    • Compensation: UK£226.00k
  • Ross McEwan (62yo)

    CEO & Executive Director

    • Tenure: 5.9yrs
    • Compensation: UK£3.58m
  • Katie Murray (50yo)

    CFO & Executive Director

    • Tenure: 0.7yrs
  • Malcolm Buchanan

    Managing Director of Corporate & Commercial Banking In Scotland and Chair of Scotland Board

    • Tenure: 3.8yrs

Company Information

The Royal Bank of Scotland Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Royal Bank of Scotland Group plc
  • Ticker: RBS
  • Exchange: LSE
  • Founded: 1727
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: UK£25.779b
  • Shares outstanding: 12.07b
  • Website: https://www.rbs.com

Number of Employees


Location

  • The Royal Bank of Scotland Group plc
  • 175 Glasgow Road
  • Edinburgh
  • EH12 1HQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RBSP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1989
RBSLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 1989
RYS1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1989
RBSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 1989
RBSSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFSep 1989
RBS PRFCLNYSE (New York Stock Exchange)SPON ADR FUSUSDApr 1997
RBS PRRCLNYSE (New York Stock Exchange)ADR PREF SHS RUSUSDJan 2007
A0TKTZDB (Deutsche Boerse AG)PERP SR -U NTDEEUROct 2007
RBSNYSE (New York Stock Exchange)ADR EACH REPR 2 ORD GBP0.25USUSDOct 2007
RYS2DB (Deutsche Boerse AG)ADR EACH REPR 2 ORD GBP0.25DEEUROct 2007

Biography

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 oper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 20:32
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.