NYSE:RBS.PRS

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

Established dividend payer with adequate balance sheet.


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

0.4%

NYSE:RBS.PRS

-1.8%

US Banks

-1.6%

US Market


1 Year Return

-2.8%

NYSE:RBS.PRS

-16.1%

US Banks

-3.0%

US Market

RBS.PRS matched the Banks industry (-2.8%) over the past year.

RBS.PRS underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

RBS.PRSIndustryMarket
7 Day0.4%-1.8%-1.6%
30 Day-0.4%-10.1%-5.7%
90 Day-2.8%-5.0%0.2%
1 Year3.7%-2.8%-13.7%-16.1%-0.8%-3.0%
3 Year19.0%-2.0%37.9%28.5%38.1%29.1%
5 Year58.0%13.4%49.3%33.2%50.8%34.1%

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

No news available

Valuation

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

34.55x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Royal Bank of Scotland Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

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


Price Based on Earnings

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

Royal Bank of Scotland Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Royal Bank of Scotland Group is good 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 US 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 18 analysts?

37.6%

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 1% yearly, however this is not considered high growth (20% yearly).

Royal Bank of Scotland Group's earnings are expected to grow significantly at over 20% yearly.

Royal Bank of Scotland Group's revenue growth is positive but not above the United States of America market average.

Royal Bank of Scotland Group's earnings growth is expected to exceed the United States of America market average.

Royal Bank of Scotland Group's earnings growth is expected to exceed the low risk savings rate of 3%.


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?

30.9%

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 has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Royal Bank of Scotland Group has become profitable in the last year making it difficult to compare the US Banks industry average.


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 US 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?

5.87%

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 States of America (1.37%).

Royal Bank of Scotland Group's dividend is below the markets top 25% of dividend payers in United States of America (3.54%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be 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?

3.0yrs

Average management tenure


CEO

Ross McEwan (61yo)

5.1yrs

Tenure

UK£3,487,000

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 serves as Chief Executi ...


CEO Compensation Analysis

Ross's remuneration is lower than average for companies of similar size in United States of America.

Ross's compensation has increased in line with Royal Bank of Scotland Group recently becoming profitable.


Management Age and Tenure

3.0yrs

Average Tenure

58yo

Average Age

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


Board Age and Tenure

5.0yrs

Average Tenure

62yo

Average Age

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


Insider Trading

No 3 month insider trading information.


Ownership Breakdown


Management Team

  • Mark Bailie (45yo)

    Chief Operating Officer

    • Tenure: 2.6yrs
  • David Wheldon

    Chief Marketing Officer

    • Tenure: 3.3yrs
  • Patrick Eltridge

    Chief Information Officer

    • Tenure: 3.7yrs
  • Ross McEwan (61yo)

    CEO & Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£3.49m
  • Michael Shaw

    Chief of Legal

    • Tenure: 2.6yrs
  • Katie Murray

    Interim CFO

    • Tenure: 0.1yrs
  • Simon McNamara (58yo)

    Chief Administrative Officer

    • Tenure: 5.2yrs
  • Helen Cook

    Chief HR Officer

    • Tenure: 1.6yrs
  • Richard Fisher

    Chief Accountant

    • Tenure: 0.0yrs
  • Matt Waymark

    Head of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Bruce Van Saun (61yo)

    Head of RBS Americas

    • Tenure: 5.1yrs
    • Compensation: UK£992.00k
  • Mark Seligman (62yo)

    Senior Independent Director

    • Tenure: 0.8yrs
    • Compensation: UK£72.00k
  • Sheila Noakes (68yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: UK£212.00k
  • Robert Andrew Gillespie (63yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: UK£208.00k
  • Howard Davies (67yo)

    Chairman of the Board

    • Tenure: 3.2yrs
    • Compensation: UK£761.00k
  • Mike Rogers (54yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£153.00k
  • Alison Davis (56yo)

    Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: UK£197.00k
  • Ross McEwan (61yo)

    CEO & Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£3.49m
  • Brendan Nelson (68yo)

    Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: UK£239.00k
  • Malcolm Buchanan

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

    • Tenure: 3.0yrs

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.PRS
  • Exchange: NYSE
  • Founded: 1727
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: UK£26.655b
  • Listing Market Cap: UK£34.019b
  • Shares outstanding: 12.04b
  • Website: https://www.rbs.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RBSSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFSep 1989
RBSLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 1989
RYS1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1989
RBSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 1989
RBSP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1989
RBS PRFCLNYSE (New York Stock Exchange)SPON ADR FUSUSDApr 1997
RBS PRRCLNYSE (New York Stock Exchange)ADR PREF SHS RUSUSDJan 2007
RBS.PRSNYSE (New York Stock Exchange)SP ADR PREF SUSUSDJun 2007
A0TKTZDB (Deutsche Boerse AG)PERP SR -U NTDEEUROct 2007
RYS2DB (Deutsche Boerse AG)ADR EACH REPR 2 ORD GBP0.25DEEUROct 2007
RBSNYSE (New York Stock Exchange)ADR EACH REPR 2 ORD GBP0.25USUSDOct 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 Analysis2018/11/30 21:35
End of Day Share Price2018/11/29 00:00
Earnings2018/09/30
Annual Earnings2017/12/31


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.