RBS share price: what’s the latest ahead of its full-year results?

Royal Bank of Scotland will unveil its full-year earnings next week, with investors hoping the stock will claw back losses sustained in January, though Barclays Capital has downgraded the stock ahead of its results.

Royal Bank of Scotland (RBS) shares have had a poor start to the new year with the stock down more than 7% year-to-date, with the lender’s newly appointed chief executive officer (CEO) Alison Rose hoping to deliver a strong set of full-year (FY) results next week – her first since taking the helm.

Thankfully for the new CEO, she will no longer be plagued by payment protection insurance (PPI) charges, which have weighed on the bank’s profits, with the deadline for claims passing last summer.

Brexit uncertainty, though not completely over, has reduced significantly since the Conservative Party secured a landslide victory in the UK general election last December, giving RBS and its peers a degree of clarity over the country’s future relationship with Europe.

However, investors are eager for an update on RBS’ underperforming businesses like Ulster and NatWest Markets, as well as details on its new digital bank Bó.

Looking to trade RBS and other UK stocks? Open a live or demo account with IG today.

Barclays Capital downgrades RBS to ‘underweight’

Analysts from Barclays Capital downgraded RBS from ‘equalweight’ to ‘underweight’ in January, though opted to leave their target price for the stock unchanged at 225p.

Based on RBS trading at 225p as of 14:50 (GMT) on Thursday, Barclays Capital believe that the stock is valued appropriately, though suggests investors should consider reducing their holdings in the company.

Barclays said that its rationale for the downgrade is due to the bank continuing to see net interest margin pressure, with the restructuring efforts to support underperforming NatWest Markets and Ulster units likely to take time before bearing fruit.

‘RBS has been sustaining high returns in recent years; however, our analysis suggests net interest margin headwinds are under-appreciated (particularly if the Bank of England cuts the base rate on January 30th) and RWA inflation will also likely drag,’ Barclays Capital said in a note.

You can go long or short RBS with IG using derivatives like CFDs .

Last week, the Bank of England (BoE) opted to leave interest rates unchanged at 0.75%, despite early signs of the UK economy picking up.

‘To be clear these are still early days and it's less of a case of so far so good than so far good enough,’ governor of the BoE Mark Carney said in reference to the health of the UK economy.

‘Although the global economy looks to be recovering, caution is warranted," he said. "Evidence of a pick-up in growth is not yet widespread.’

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.