Royal Bank of Scotland

Ticker RBS

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As of 06:54 25 Aug 2019
Market cap. Pound sterling
22,122.74 million
As of 06:54 25 Aug 2019

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CMA takes action against RBS and Santander

Arnold Schwarzenegger PPI advert
PA Media

The Competition and Markets Authority (CMA) has ordered both RBS and Santander to appoint independent bodies to audit their payment protection insurance (PPI) process, after the banks failed to send, or sent inaccurate, annual PPI reminders.

Loan customers who were mis-sold PPI have until 29 August 2019 to claim for compensation.

The CMA says that RBS failed to provide reminders to almost 11,000 of its customers for up to 6 years, meaning those affected were unable to fully assess whether they wanted to continue paying for PPI, and were stopped from shopping around effectively.

RBS has now written to those affected, providing a reminder of their right to cancel their policy and has so far paid out over £1.5m in refunds to customers.

As for Santander, the bank sent out annual reminders containing incorrect information to over 3,400 of its mortgage PPI customers from 2012-2017.

It must now appoint an independent body to review its PPI processes and continue to maintain its systems to prevent further breaches.

RBS IT outage leaves bills unpaid - report

Getty Images

Computer problems at Royal Bank of Scotland mean that RBS and Natwest customers cannot pay their credit cards or see their bills, the Financial Times reports.

Also, call centre staff have been left without access to information so they have been unable to help customers. RBS's website has registered the problem.

It said: "Some customers are unable to view credit card information on online and mobile banking.

"We are also experiencing some problems with our telephony service for credit cards, which is limiting our ability to assist customers over the phone.

"We apologise for any inconvenience that this may cause, we are working to resolve these problems as quickly as possible.

"Customers can continue to use their credit cards as usual and no customer will be left out of pocket.”

Metro top and RBS bottom in banks' customer ratings

People walk past Metrobank

Customers have provided a ray of sunshine for Metro Bank as the embattled business topped official satisfaction ratings.

Metro was joint top with First Direct, with 82% of personal British customers saying they would recommend the banks to their family and friends.

Metro has seen its share price nosedive in recent months and is looking for a new chairman.

RBS remained bottom of the twice-yearly customer rankings.

The challenges for RBS's new boss

Today Programme

BBC Radio 4

Alison Rose
Tom Parkes/RBS

Royal Bank of Scotland is due to announce who will replace Ross McEwan soon and Alison Rose is reportedly the front-runner.

What will be on her plate if she lands the top job?

Simon French, chief economist at Panmure Gordon, says she will have three things to do.

She has to sell the bank which is still about 62% state-owned. This will probably happen in the mid-2020s, he says. She will try and refocus the business on more domestic affairs after its international expansion ended in tears.

And finally, she will try and make it more profitable. Its return on equity - a profitability measure watched by analysts and investors and is basically profits divided by shareholders' equity, is 7.5%.

Rival Barclays is at 10%.

The bank that wants to be a digital disrupter

Getty Images

Ross McEwan could remain chief executive of Royal Bank of Scotland until next April, depending when and how directors select his successor.

That leaves his media minders with a challenge in the meantime - how to rein his straight-talking Kiwi instincts, avoiding controversy.

They took a risk this week, hosting an on-the-record dinner with a group of Scottish journalists - and in a distillery, too.

Read what happened here

BreakingRBS has strong quarter; raises dividend

RBS sign

RBS has reported a second quarter profit of £1.3bn, a big improvement on the same period last year when it was hit by the costs of reaching a settlement with US regulators.

The bank also announced an annual dividend of 2p per share, plus a further special dividend of 12p per share.

The company expects the rest of the year to be in line with expectations, but with gains from foreign currency moves.

However, RBS says it is "very unlikely" it will achieve its target of a return on equity of 12% and a cost to income ratio of less than 50% in 2020.

RBS shares fall 5%

Today Programme

BBC Radio 4

share price

Royal Bank of Scotland's share price has fallen 5% after its results. While it is making a £1.7bn payment to shareholders - including taxpayers - the bank has admitted that it may not reach all its financial targets.

Ross McEwan, who became chief executive in October 2013, is leaving and will become chief executive of National Australia Bank.

He told the Today Programme that during his period running the bank he had focused it on the UK, strengthened its focus on commercial and retail banking and also improved its capital and liquidity position.

"We've still got a lot of work to do on customer service and continuing to rebuild trust," he said. "But I think you've got a very solid bank that should the government at any stage wish to sell its shareholding, we're in a very good position for it to do so".

The government still owns more than 60% of RBS, having owned nearly 80% after a 2008 rescue.

"My job has been to rebuild a very safe bank," he said.