ROYAL BANK OF SCOTLAND GROUP PLC is within a rising trend. Continued positive development within the trend channel is indicated. The stock has broken up through the resistance at pence 50.00. A further rise to 100p (1) is predicted in the medium term. The stock is assessed as technically positive for the medium long term.

Good luck -

RBS executive confident bank can meet funding needs

THE Royal Bank of Scotland executive charged with ensuring the Edinburgh bank has enough money to back its loans has warned the banking sector faces a funding gap but is "confident" RBS can meet its needs.

I have a substantial number of these - what view do RBS holders on this thread take - hold for the next 3 weeks pre results - or cash in now?

Hold for the next three years.

One may look back one day and wish one had ?

i banked a very small profit yesterday - and bought more GKP sa it happens
i primarily view RBS as a trading stock as it's surprisingly volatile

Thanks all. I've bought and sold 200,000 shares 16 times since August and not yet sold at a loss but break even is 22.10p and don't want to be caught short - staring the literal and the obvious!!

16 out of 16 - well done!

Changes to Wholesale Banking Operations

RNS Number : 4384V

Royal Bank Of Scotland Group PLC

12 January 2012

The Royal Bank of Scotland Group plc ("RBS") announces strategic and organisational changes in its investment banking/wholesale business

12 January 2012

RBS has today announced changes to its wholesale banking operations to ensure they continue to deliver against the Group's strategy announced in 2009. The changes follow a review outlined at its Q3 2011 results, in light of a changed market and regulatory environment. The changes will see the reorganisation of RBS wholesale businesses into "Markets" and "International Banking" and the exit and downsizing of selected existing activities.

RBS wholesale businesses are dedicated to the needs of our corporate and institutional clients globally. Going forward they will focus on our existing strengths in fixed income, foreign exchange, debt financing, transactions services and risk management solutions. These are cornerstone products and services for the global economy in any economic environment.

Group Chief Executive Stephen Hester said:

"We launched the RBS recovery plan in 2009 with strategic tests for the businesses that the Group would retain. They would be restructured and managed to sustain strong, customer driven competitive positions, return more than their cost of capital, use a proportionate amount of Group resources and be closely connected with each other.

"This strategy has succeeded in making RBS stronger and placing us on the road to long-term success. We have reduced our balance sheet by some GBP600 billion and have rebuilt capital ratios that place us among our strongest international peers. Our core Retail and Commercial businesses outside Ireland now operate with an attractive return on equity overall. Our investment bank has produced an average return on equity of 19% and delivered over GBP10 billion in profits since 2009. Our Non-Core assets have fallen below GBP100 billion, ahead of schedule. Profits from our Core businesses have been essential to pay for the clean-up losses of RBS legacy.

"But for our strategy to be effective, it must adjust to fresh challenges. And it is clear that, particularly in the wholesale banking arena, significant new pressures have emerged. The changes we are announcing today seek to ensure that RBS is at the front of the pack in pursuing a strategy that reflects the environment we expect to operate in.

"Our goal from these changes is to be more focussed for customers, more conservatively funded, more efficient and with better, more stable returns for shareholders overall."

The changes will include an exit from cash equities, corporate broking, equity capital markets, and mergers and acquisitions businesses. Significant reductions in balance sheet, funding requirements and cost base in the remaining wholesale businesses will be implemented. The actions announced today are outlined in the notes below. They will begin immediately, but may take up to three years to implement. RBS will provide final detail with its Full Year 2011 results on 23 February 2012.

From the RNS

9. At this stage we envisage a further net employment reduction over three years of circa 3,500, split between our UK and non-UK locations, in addition to the approximately 2,000 reduction in staff in GBM in H2 2011. These proposals are of course subject to consultation with our various social partners in those jurisdictions impacted.

close to sale of 12b of none core business

Bit of a gap to fill around 24p.

i decide to sell job loses will cost millions

Getting rid of 2.5 k worth of staff seems to be just the tonic for the SP !

sp continues to bolt - missed it this time but making plenty elsewhere, especially on gkp

Gap filled (atm).

Morgan Stanley note:
RBS announced a major restructuring of the i-bank unit (known as GBM); we see this as a rational response given the outlook but still expect negative EPS revisions to weigh on the stock as this deleveraging is factored into sell-side estimates. We expect a smaller and less profitable GBM by 2013e. We now model GBM revenues of £4.7bn in 2013e (-22% vs 2011e); we expect costs of £3.2bn down (-27% vs 2011e). This results in PBT of £1.5bn, which is 33% below our prior estimate. However, later ringfence implementation, which we had included in 2014, means that our 2014 EPS is unchanged.
Questions remain to be answered. We expect to see more clarity on revenue attrition from asset shedding, magnitude of restructuring charge (we assume £500m), detailed timeline of the rundown, types of assets to be shed, impact on risk content of the i-bank and other details to be given at the full year results on Feb 23rd.
Valuation at 10x 2013e P/E vs. the sector on 7x is not especially cheap. However, at 0.4x P/TNAV 12e, if returns actually recover there could be upside longer term. Given likely headwinds from earnings revisions and tail risk from non-core rundown, we rate RBS along with Lloyds as Underweight. We still prefer Barclays and HSBC, both OW rated, with better funding profiles.

anyone active in RBS either long or short or holding?

Long

RBS to sell aircraft-leasing arm
Posted: 17 January 2012 0543 hrs (Singapore time which is 8 hours ahead) so tomorrow should be a blue one...

LONDON: The state-rescued Royal Bank of Scotland announced Monday it has agreed to sell its aircraft leasing division to Japan's Sumitomo Mitsui Banking Corp. for $7.3 billion (5.76 billion euros).

"Reaching agreement on a deal of this scale in such a volatile market is a significant success for our non-core division and a credit to SMBC," said RBS Group Finance Director Bruce Van Saun in a statement.

"This transaction further evidences our progress in reducing our non-core portfolio and returning the group to a position of strength."

The Dublin-based RBS Aviation Capital was set up in 2001 and has become the fourth largest aircraft lessor in the world, according to RBS.

Managed by a staff of 69, it has a fleet of 206 jets which are leased to 65 airlines in 24 countries. It has commitments to buy another 87 aircraft by 2015, worth $3.7 billion, which will transfer with the business.

The sale is expected by the end of the third quarter of 2012.

RBS decided to sell the unit as part of a divestment strategy begun following the bank's bailout by the British government at the height of the financial crisis. British taxpayers now own 83 percent of the bank.

Sumitomo Mitsui Banking Corp. has agreed the deal on behalf of a consortium comprising its parent company, Sumitomo Mitsui Financial Group, and Sumitomo Corp.

"As a result of the sale, the consortium will acquire RBS Aviation Capital for an approximate consideration of $7.3 billion, (£4.7 billion), subject to certain post-closing adjustments," the RBS statement said.

- AFP/wk

RNS Number : 6734V

Royal Bank Of Scotland Group PLC

17 January 2012

RBS announces sale of RBS Aviation Capital to a consortium of Sumitomo Mitsui Financial Group for $7.3bn, (GBP4.7bn) The Royal Bank of Scotland Group plc ("RBS") today announces that it has agreed to sell RBS Aviation Capital to Sumitomo Mitsui Banking Corporation ("SMBC"), acting on behalf of a consortium comprising its parent, Sumitomo Mitsui Financial Group, and Sumitomo Corporation (the "Consortium"). As a result of the sale, the Consortium will acquire RBS Aviation Capital for an approximate consideration of $7.3bn, (GBP4.7bn), subject to certain post closing adjustments. Future order commitments of $3.7bn, (GBP2.4bn) will transfer with the business. The risk weighted assets associated with the Aviation Capital business are $2.5bn, (GBP1.6bn). It is expected that the sale will complete before the end of Q3 2012. The proceeds from the transaction will further strengthen the Core Tier 1 capital position of the Group and will be used to reduce wholesale funding requirements and fund ongoing lending. The disposal is expected to reduce Non-Core Division's third party assets by $7.0bn, (GBP4.5bn) on completion. Commenting on the transaction, RBS Group Finance Director, Bruce Van Saun said, "Reaching agreement on a deal of this scale in such a volatile market is a significant success for our Non-Core Division and a credit to SMBC. This transaction further evidences our progress in reducing our Non-Core portfolio and returning the Group to a position of strength." The Business RBS Aviation Capital is a fully integrated aircraft leasing company which was established in 2001 and through organic growth has become the world's fourth largest aircraft lessor by owned and managed fleet value. The business, which has been profitable since inception, is headquartered in Dublin, Ireland and employs 69 specialists based in Dublin and eight other locations in Europe, US and Asia. It currently owns 206 aircraft and has commitments to purchase a further 87 by 2015. The sale of RBS Aviation Capital involves the disposal of the entire issued share capital of RBS Aerospace Limited, RBS Aerospace (UK) Limited and RBS Australia Leasing Pty Limited together with other assets comprising the RBS Aviation Capital operating lease business.

As of 30 June 2011, RBS Aviation Capital had gross assets of $7.2bn, (GBP4.6bn), and generated a profit (unaudited) of $89m, (GBP58m) in the six month period ended on that date. Reason for the sale RBS Aviation Capital was designated part of Non-Core in February 2009 following the Group's Strategic Review, which called for de-leveraging to strengthen the Group's balance sheet, along with increased business focus.

The Transaction The transaction is conditional upon receipt of antitrust and regulatory approvals. It is also subject to customary termination provisions and may also be terminated by either party at any time after 14 September 2012 if the conditions precedent have not been satisfied on or by that date. Consideration The total consideration payable to RBS, before the assumption of external indebtedness and working capital liabilities, is expected to be approximately $7.3bn, (GBP4.7bn). It is payable in cash on completion of the relevant transfer agreements, subject to certain post closing adjustments. Employees and Management The management team and staff of RBS Aviation Capital are highly regarded in the industry and will remain with the business. The management team will continue to manage the RBS Aviation Capital business going forward providing continuity for the staff and importantly its customers and suppliers.