UK Shares Spread Betting: RBS Falls on Fifth Annual Loss in a Row
The FTSE 100 continues to claw back to its recent highs, up 17 points in mid-morning trade at 6345.
However, there are two sides to their figures.
Underneath, the bank has performed well this year with growth in operating profit, although revenues look like they might continue to slide.
The bank has also reached a 100% ratio of loans to deposits, so it is inherently a safer institution than it was.
Unfortunately, you then have the other side of the figures; the ‘misdemeanour’ impairment charges.
A statement of intent from the bank that it could return to full privatisation by 2015 will continue to raise eyebrows, as this probably depends on a number of things beyond their control.
Macro issues aside, we must assume that the banking sectors closet of skeletons does not continue to grow, and that the current issues are resolved satisfactorily.
The cynic in me still thinks we need a few stars to align for a taxpayer return by 2015, but at least underneath all that, RBS 2.0 is on the right track.
US markets continue to fight back to close at post-crisis highs, within striking distance of the 9 October 2007 all-time high close.
The Dow added 175 points yesterday, as the Draghi/Bernanke safety net was rhetorically backed up.
In addition, the confirmation of the expected posting of Haruhiko Kuroda as Japan’s new finance minister brings another aggressive policymaker to the ‘currency war’ debate.
Today’s Dow futures are pointing towards the US adding small gains to inch closer to that all-time high, with an opening call of 14,085, up 10 points.
Look out for economic data in the form of the second reading of US 2012 Q4 GDP and Chicago PMI numbers.
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