Market News & Analysis

Top Story

RBS profits fell in 1Q - Range-bound strategy

Royal Bank of Scotland Group, a major U.K. banking group, reported that 1Q net income fell to 288 million pounds from 707 million pounds in the prior-year period, and operating profit was down 48.8% on year to 519 million pounds. Return on tangible equity shrank to 3% from 8.3% a year earlier. 

The Bank pointed out: "Net impairment losses of 802 million pounds equate to 90 basis points of gross customer loans, compared with 11 basis points in Q1 2019. Q1 2020 includes a 628 million pounds charge in respect of a more uncertain economic outlook, bringing our total multiple economic scenario (MES) overlay to 798 million pounds. Bank net interest margin (NIM) of 1.89% was 4 basis points lower than Q4 2019 reflecting continued structural pressure in the mortgage business."

From a technical perspective, the stock price should be range-bound from here on as prices swing up and down but with no resulting overall price movements in either direction on a short term basis. However, the medium term trend remains bearish. Readers may want to consider the potential for short trades below horizontal resistance at 124.6p and for long trades above horizontal support at 101p.

A break below 101p would reinstate a bearish bias with 86p as next target. A push above 124.6p would trigger a bullish acceleration towards 144p.

Source: GAIN Capital, TradingView


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.