Hobson: Investors Who Buy RBS Defy Logic

THE WEEK: Morningstar columnist Rodney Hobson gets his teeth into the banking sector, which has been reporting quarterly figures this week

Rodney Hobson 29 April, 2016 | 2:22PM

On the whole, first quarter figures from the banks issued this week – with the exception of HSBC (HSBA) which reports next week – were hardly brilliant but they could have been worse. In fact, over the past few years they have often been far worse.

Barclays (BARC) posted profits down 25%, which was below analysts’ expectations, thanks in large part to the cost of restructuring. Income was down 13% and the investment banking side continues to struggle but one should not underrate the great news that there were no more provisions for mis-selling or regulatory misdeeds.  

Every time I suggest that this catalogue of paying for past sins in coming to an end we get another batch, but perhaps we can start to hope.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Barclays PLC138.87 GBX1.28
HSBC Holdings PLC400.20 GBX0.53
Lloyds Banking Group PLC34.36 GBX1.54
NatWest Group PLC153.45 GBX1.25
Standard Chartered PLC461.10 GBX1.36

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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