On Friday 26 February, RBS is due to release its full-year figures for 2015. The bank’s adjusted earnings per share are called to drop from 0.385p to 0.239p, while annual revenue is called to fall by almost 23% to £14.008 billion. Last year saw the company report an annual profit of £2.643 billion, however, this year that has returned back to a loss of £1.884 billion.
RBS have found 2015 a tough year as both its fundamentals and share price have come under pressure. Although referred to less frequently, the historical issues of PPI mis-selling still hang around, the last quarter alone has seen a further £500 million that the bank has had to set aside. The company has also had to write down £498 million on its Coutts business along with another £1.5 billion in miss-selling in the US housing markets.
As well as posting disappointing updates on how the day-to-day running of the business, the banking sector as a whole has come under real pressure over the last six to twelve months as the oil price has continued to fall. These low levels in oil have seen middle east sovereign funds continue to reduce their exposure to European banks, as they are forced to reduce exposure as energy revenue streams dry up.