RBS had hoped the USA fine would fall in 2017 to enable it to put its major legacy issues behind it.
Michael Hewson, chief market analyst at CMC Markets UK, commented: "Royal Bank of Scotland (has) finally been able to report an annual profit, but while this makes a good headline the only reason they were able to do so was because the ongoing issue with the US DoJ remains unresolved". Its peer group are achieving around 3%, highlighting the work still to do for RBS to catch up. Shore Capital reaffirmed a "hold" rating on shares of Royal Bank of Scotland Group in a research note on Friday.
The biggest institutional shareholders in Royal Bank Scotland plc (The) include Dimensional Fund Advisors, Inc. which owns 4 million shares in the company valued at $28.18 million.
Additionally on 9/27/17 Jefferies "Upgrades" Royal Bank Scotland Group Plc (NYSE:RBS) to Buy setting price target at $0 and on 8/11/17 HSBC "Upgrades" the stock to Hold at $0. Eleven investment analysts have rated the stock with a hold rating, six have assigned a buy rating and one has given a strong buy rating to the stock. The stock now has an average rating of "Hold" and an average price target of GBX 277.29 ($3.83).
In the same period, market share of new mortgages fell from 13% in 2016 to 12% in 2017, with stock share rising from 9.7% to 10%. Its book value per share for the most recent quarter is $11.56 while its price to book ratio for the same period is 0.69, as for as the company's cash per share for the most recent quarter is $74.9, however its price to cash per share ratio for the same period is 0.11.
Shares in Royal Bank of Scotland Group (LON:RBS) have fallen deep into the red in London this morning, even as the part government-owned lender reported its first annual profit since the financial crisis. The financial services provider reported GBX 25.20 ($0.35) EPS for the quarter, missing the Thomson Reuters' consensus estimate of GBX 25.80 ($0.36) by GBX (0.60) (($0.01)), Bloomberg Earnings reports.
Chief executive Ross McEwan said the DoJ settlement was out of the bank's control but it could now begin to think about resuming dividends or buying back shares almost a decade on from its £45.5 billion state bailout during the financial crisis.
The Chair of RBS's pay committee Robert Gillespie said the payout reflected that the bank performed well on financial measures but missed targets to improve customers' trust.