Royal Bank of Scotland sees losses widening

Past year it reported a £2bn loss.

Shares were up 6.6p to 268.5p, as revenues rose 1% to £1.6 billion over the period.

(The) boosted their price objective on Royal Bank of Scotland Group plc from GBX 225 ($2.80) to GBX 240 ($2.99) and gave the stock a buy rating in a research note on Friday, November 25th. That includes more than £3.1 billion ($4 billion) to resolve allegations that it sold risky mortgages in the US prior to the 2008 crisis.

The cost of oil also took a tumble as USA crude inventories climbed for a seventh week on the bounce, hampering attempts to cut global supply and support prices.

The loss this year was just shy of £7bn and brings the total losses up to £58bn since the bank was bailed out back in 2008. Net interest income dipped to GBP8.71 billion from GBP8.77 billion, but net interest margin improved to 2.18% from 2.12% in 2015.

In a preview, analysts at the Share Centre said: “Full year profits are expected to come in around £260m and investors will also be looking for an update on the level of mobile wagers and trading in Australia and the US”. Royal Bank of Scotland Group plc has a one year low of GBX 148.40 and a one year high of GBX 260.90.

The stock dropped 4.71 percent at time of writing this.

RBS said it would slash operating expenses by a further £2bn over four years, with £750mn of savings being made in 2017. This includes the £750m cost for the new Williams & Glyn plan unveiled last week.

Instead, RBS and the government have suggested the bank gives £750m – which the bank has set aside – towards initiatives created to boost competition in United Kingdom business banking.

RBS said it will probably return to profit in 2018 The British government, which owns more than 70 percent of RBS after the bailout with taxpayer money, has said it will not resume selling its stake until the bank settles its USA fines and resolves its state aid requirements. Its adjusted cost to income ratio for 2016 was 66%. “We are aiming to service 95% of our commercial customers’ needs through mobile and online by 2020, up from almost 80% today, by introducing a new digital banking service that will greatly improve experience”, he says. Our focus on capital strength remains a cornerstone of our plan.