AFPCopyright: AFP
Laith Khalaf, senior analyst at Hargreaves Lansdown, says that RBS' latest results are a bit of a "curate’s egg".
"The headline numbers are ahead of expectations, but this is largely a matter of one-off items toppling onto the right side of the scales. The core business is looking pretty stagnant, at best, and the bank’s interest margin is heading in the wrong direction, despite rising rates," he said.
"Meanwhile RBS has taken a Brexit blow of £100m, an impairment of its assets to reflect what it believes is greater economic uncertainty. This serves as a reminder that the bank’s fortunes are very heavily influenced by the domestic economy, and by extension, so is its share price.
"There is some positive news, in that the bank’s capital ratios are looking very healthy, and that gives it scope to return a wedge of cash to shareholders. That’s already largely baked into expectations though, and the lack of forward momentum in the top line will leave shareholders feeling a bit short-changed."
Indeed they do feel "short changed".
RBS shares are now down more than 5%.
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