The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Fixed income: RBS creates its own kind of FIG business

New FIG chief William Fall is building on bank’s DCM and structuring strengths; Bank sees business opportunity arising from its own traumas

On November 3 RBS announced a 20% quarterly decline in third-quarter investment banking revenues. Subsequently last month, with rising risk-weighted assets and amid worries about exposure to Ireland, the bank’s share price fell by nearly 15%. Fiona Swaffield, analyst at Execution Noble, warned investors: "Over the next 12 months, we find it difficult for RBS to trade above its tangible book value of 51.8p/share, as the bank is likely not to earn rates of return in excess of its cost of capital for another two years." At the end of the month, RBS shares were changing hands at just under 40p.

While group chief executive Stephen Hester and his senior management team have won deserved plaudits for their efforts to restructure the group, run down non-core assets, improve funding and liquidity, and better manage the business mix, much remains to be done.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree