4.9800 0.00 (0.00%)
After hours: 4:17PM EST
|Bid||4.8800 x 42300|
|Ask||5.0300 x 40700|
|Day's Range||4.9750 - 5.0950|
|52 Week Range||4.3300 - 7.3100|
|Beta (5Y Monthly)||1.21|
|PE Ratio (TTM)||30.00|
|Forward Dividend & Yield||0.10 (1.83%)|
|Ex-Dividend Date||Mar. 25, 2020|
|1y Target Est||N/A|
LONDON/HONG KONG, Feb 18 (Reuters) - HSBC's management ranks face uncertainty over jobs and pay in the lender's most radical overhaul in years, as it seeks to slash nearly $5 billion in costs and prune its underperforming investment bank. The lender said on Tuesday it had cut its bonus pool for 2019 by 4% to reflect poor performance and warned its investment bank will take a hefty proportion of the around 35,000 job cuts it expects over the next three years - many at its headquarters in London's Canary Wharf financial centre. "There will be meaningful job cuts in the UK," Chief Financial Officer Ewen Stevenson said, adding they would be largely in the investment bank and senior management ranks based in the bank's London HQ.
UK Government Investments, which manages taxpayers' stake in Royal Bank of Scotland , has appointed Charles Donald as Chief Executive. Donald, a former Credit Suisse banker, is currently director of the financial institutions group at UKGI. UKGI also manages the government's stakes in the Post Office and other public assets including mapping agency Ordnance Survey and the British Business Bank.
(Bloomberg Opinion) -- Defying the gloom around the financial services industry in post-Brexit Britain, the U.K. has maintained its edge in fostering the industry's digital revolution. Lured by friendly regulators, fintechs have proliferated and investors have poured billions into companies that have rattled centuries old, high-street lenders. The battleground is becoming so fierce, however, that it’s proving too much for some of the upstarts.Blaming the U.K.’s decision to pull out of the European Union, Berlin-based N26 GmbH says it will close all of its U.K. accounts by April, affecting several hundred thousand customers. Elsewhere, it says its global ambitions are unaffected. The mobile banking app, which has a $3.5 billion valuation, will keep chasing growth in the U.S., where it has a partnership with another digital bank, and in the EU, where it has more than 5 million customers in 17 countries.The additional regulatory burden associated with Brexit will have certainly played a role in N26’s own exit. The lender, backed by billionaire Peter Thiel and China’s Tencent Holdings Ltd., would have needed a U.K. banking license once “passporting rights” (which allow finance companies to work seamlessly between the EU and Britain) lapse. That will have accelerated a decision on whether to commit to the U.K. market, whose complexity and cost N26 underestimated when it launched there 18 months ago.However, N26’s departure, which follows that of another German mobile lender, Fidor Bank, says more about the competitiveness in the U.K. than the fear of Brexit red tape. Even for a company that famously dissed profitability as a long-term goal, being an also-ran in a cutthroat market had limited appeal.The latecomer has faced intense rivalry from fintechs and big banking incumbents alike, with most offering cheap international services and better data on spending. Lacking a clearly distinctive product, the lender has found itself up against more entrenched rivals, from Monzo (which boasts 3.9 million U.K. accounts) to Revolut (with 3 million British customers) to Starling Bank (1.5 million accounts).Meanwhile, funds are pouring into fintech startups. Investment in the U.K. sector surged 45% to $2.9 billion in the first half of 2019 compared with the same period in 2018, according to data compiled by Bloomberg Intelligence. Revolut is reportedly in talks to raise $1.5 billion, while Starling has just raised another 60 million pounds ($78 million). Monzo is reportedly seeking up to another 100 million pounds. The big U.K. lenders have also been plowing cash into their own apps to be more like the fintechs, and adding entirely new ones. Royal Bank of Scotland Plc reportedly spent 100 million pounds to launch digital lender Bo last year. Bo will be a success, according to RBS, if it makes a profit even while remaining a secondary account for clients — that’s a challenge most of the fintechs are still trying to overcome. In June, Monzo said just 30% of its active users deposit at least 1,000 pounds, a threshold that it says denotes customers paying their salaries into its accounts.For N26, Brexit offered a neat way to explain its retreat. But without a certain path to profitability, competition from old and new players will keep the pressure on digital banks in the U.K. and beyond. To contact the author of this story: Elisa Martinuzzi at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The FTSE 100 index ended the Valentine's Day trading session 0.6% lower, down 0.8% for the week, while the midcap bourse rose 0.5% as it drew strength from the pound. Global markets are expecting stimulus from central banks as new coronavirus showed no signs of peaking. U.S. Federal Reserve Chair Jerome Powell had last week warned that the economic impact from the outbreak could spill over globally.
Royal Bank of Scotland's new Chief Executive Alison Rose unveiled a new strategy for the taxpayer-backed bank on Friday, including radically cutting back the size of its loss-making investment bank and renaming the company NatWest. Rose, who replaced former CEO Ross McEwan in November to become the first woman to lead one of Britain's major banks, is hoping a rebrand will help rehabilitate the lender's image after years of scandals following a 45 billion pound taxpayer rescue during the 2008 financial crisis. Although the RBS brand will live on in Scotland, the bank will stop using the 293-year-old name at group level and adopt the NatWest brand that grew out of National Westminster Bank, which RBS bought in 2000 and which consistently polls as more popular in customer satisfaction surveys in Britain.
LONDON/WASHINGTON DC (Reuters) - An ex-Royal Bank of Scotland (RBS) employee is suing the U.S. Justice Department and Securities and Exchange Commission (SEC) for records that could relate to a bounty he says he is owed under a post-crisis whistleblower programme. Victor Hong alleges the U.S. agencies "capriciously" and "in bad faith" flouted the law when assessing whether he was due a payout for information he provided to probes into the British bank's mis-selling of mortgage bonds in the run-up to the 2007-08 financial crisis, court filings show. In August 2018, RBS agreed to pay $4.9 billion to end the probes, which were led by the Justice Department.
Sealed Air (SEE) delivered earnings and revenue surprises of 5.41% and 0.10%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
LCI (LCII) delivered earnings and revenue surprises of 3.64% and 1.00%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
(Bloomberg) -- Royal Bank of Scotland Group Plc is dipping into the pre-financial-crisis playbook as it seeks to increase funding to the renewable energy sector.The bank’s NatWest unit structured a 1.1 billion pound ($1.4 billion) synthetic securitization tied to loans for renewable energy projects.The transaction is the first of its kind in the U.K. to be backed by a portfolio of green loans and will help the bank reach its target of lending 10 billion pounds to the sustainable energy sector before the end of the year, RBS said in a statement. About 85% of the lending is for solar and wind projects, with the rest going to smart meters, energy from waste, hydro power, and biomass power.Synthetic securitizations, also known as capital-relief trades, have gained popularity among lenders such as Nordea Bank Abp, Standard Chartered Plc and Banco Santander SA in recent years because they help banks meet tougher capital rules without having to find buyers for large portfolios of loans.They have also raised concerns because of similarities with synthetic collateralized-debt obligations which were blamed for making banks more interconnected and exacerbating the financial crisis.Read more: Nuveen Sees Structured Finance Going Green With More Solar, CarsIn a synthetic securitization, a bank will buy credit protection on a portfolio of loans from an investor who would then be obliged to reimburse the bank for losses incurred in the portfolio up to a certain amount. By transferring the risk of default to the investor, a bank can reduce the amount of capital it has to hold to cushion against losses.Macquarie Infrastructure Debt Investment Solutions acted as an adviser for BAE Systems Pension Scheme, which bought the equity tranche of the transaction.The suite of investable assets that claim to take environmental, social and governance issues into consideration is growing rapidly. Structured credit investors can already buy ESG collateralized loan obligations, and Nuveen to JPMorgan Chase & Co. are forecasting greater supply of ESG securitizations.Read More: NordLB Offers Renewables Covered Bond on Luxembourg New LawESG rating firm Sustainalytics reviewed the projects in the reference portfolio for RBS’ transaction and verified them as green, the bank said. The ESG credential was a “nice to have” for the investor in the transaction but the credit risk of the portfolio was the primary concern, said Benedetto Fiorillo, Head of Portfolio Risk Mitigation at NatWest.The deal comes at a time when the U.K. government is looking to deploy low-carbon energy infrastructure. For example, in March 2019, the government announced a plan to source 30% of the country’s electricity from offshore wind by 2030, which will need more than 40 billion pounds in investment. It’s one of many announcements expected after the Parliament legally committed the country last year to a goal of hitting net-zero emissions by 2050.The RBS transaction, known as Nightingale Project Finance 2019-1, priced last month and the bank plans another similar deal in 2021, said Fiorillo“The rationale to boost deals is certainly driven by not only our capital management but also supporting the banking in a key growth area and ESG is certainly one of those the bank is focused on,” said Fiorillo.To contact the reporters on this story: Alastair Marsh in London at firstname.lastname@example.org;Akshat Rathi in London at email@example.comTo contact the editors responsible for this story: Tim Quinson at firstname.lastname@example.org, Chris VellacottFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Dividend paying stocks like The Royal Bank of Scotland Group plc (LON:RBS) tend to be popular with investors, and for...
(Bloomberg Opinion) -- How does an older bank unlock the value of a nimbler, faster-growing division? That was the challenge facing Bruce Van Saun, then CFO at the Royal Bank of Scotland (RBS). He had joined the storied firm in 2009, after their £500 billion bailout of loans and guarantees from the U.K. government. Within RBS, the Citizens group in the U.S. was growing quickly by appealing to commercial clients and middle market companies. But the skills and personnel needed to achieve success with what was effectively a start-up are very different from the assets needed to succeed as a megabank. In an unusual step, Van Saun decided to IPO the Citizen’s division. These types of transactions typically involve a sale or a (majority-owned) spinoff. But Van Saun wanted to shake up the culture at the new firm, and an IPO would allow him to recruit more entrepreneurial sorts of bankers that might not be attracted to a sleepy, foreign-owned, recently bailed-out bank. Citizens Financial Group (CFG) listed its initial public offering in 2014; today, it has $164.4 billion in assets, 2,900 ATMs and 1,100 branches in 11 states. The bank has grown into the 13th largest bank in America. Van Saun is its Chairman and Chief Executive Officer. He was named American Banker’s 2019 “Banker of the Year” and sits on the Federal Reserve Bank of Boston Board.The bank (among other things) finances most iPhone purchases or monthly leases.His favorite books can be seen here; a transcript of our conversation is available here.You can stream/download the full conversation, including the podcast extras on Apple iTunes, Overcast, Spotify, Google, Bloomberg, and Stitcher. All of our earlier podcasts on your favorite pod hosts can be found here.Next week, we speak with Brian Kelly, better known as “The Points Guy.” Kelly took an interest in credit card and airline points, and turned it into a substantial media business, with 60 employees and 7 million unique visitors a month. To contact the author of this story: Barry Ritholtz at email@example.comTo contact the editor responsible for this story: Sarah Green Carmichael at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.