FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

Will Royal Bank Of Scotland Need More Funding After The £12 Billion Rights Issue?

While Royal Bank of Scotland (RBS) may be on the verge of securing one of the largest UK fund raisings of recent times, via a £12 billion rights issue, a report from Deutsche Bank AG suggests that RBS may need to return to the market some time soon for more funding. The report from Deutsche Bank AG does not suggest that RBS is in any trouble. But it does cast doubt on the strength of the group’s Tier 1 capital position in comparison to their UK competitors.



It seems that the even after the planned fund raising and sale of the insurance division, RBS may still need to return to the market over the next couple of years to bolster their financial position. While the group has grown rapidly over the last few years it appears that the ongoing credit crunch seems to have hit them harder than most with many acquisitions yet to ‘bed down’.



It will be interesting to see how this story develops as there is already much speculation and concern about the current £12 billion rights issue. General market conditions seem to have deteriorated further and this will be a big test of investor appetite for rights issues.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue