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 -

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.

sold at 28.2 this morning. hopefully buy in again on retrace...

There might not be a retrace ? onwards and upwards

I suspect there might be a temporary dip from the 200 DMA, which might be a profit taking level.

BARC zipped straight through its 200 dma so why not RBS?

True, but can you really compare BARC to RBS?

40p area be very nice

to buy today or not to buy? Am in hospital for op tomorrow, Thurs and most of Fri so cant keep an eye on it. Greek solution (as best as it can be) should impact banks positively - default/delayed or no solution theoretically have negative impact...

Of course you can! Just ask for a local anaesthetic and take your touch phone with you and you can get MoneyAM on the mobile service! I doubt the phone will interfere with the rest of the high tech gadgetry ;o)

Transactions tax 'won't be imposed on UK', says EU's Barnier

http://uk.finance.yahoo.com/news/transactions-tax-wont-imposed-uk-012210610.html;_ylt=AkN8l7gI_QVqM9ew977iRfLSr7FG;_ylu=X3oDMTNyM3UwM24yBG1pdANGUCBUb3AgU3RvcnkgTGVmdARwa2cDNzMyZjU4OTktZTQ1Ny0zYTRlLTg2MzEtODI5MmU0ZGFhZTdmBHBvcwMxBHNlYwN0b3Bfc3RvcnkEdmVyAzU3NzRjYWYwLTQ2NzctMTFlMS05N2UzLTlmNDQ2OGFhZGVkNQ--;_ylg=X3oDMTFvZzY4MG5jBGludGwDZ2IEbGFuZwNlbi1nYgRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25zBHRlc3QD;_ylv=3

Harrycat - I wish!

interesting point is that, RBS shares collapsed when Goodwin left the co, as if a golden manager was lost.

Some of the bankers need to understand that they are no immune if they act the same ...