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 In
the 2007 Annual Report of the Royal Bank of
Scotland (RBS) issued in early 2008, it talks about profits before tax up
8%, earnings up 18%, return on equity of 19.9% and an increase in the
dividend of 10%. Since then the company has had to undertake a major rights
issue to strengthen its balance sheet. But even that was not enough and
subsequently the company has received both equity and preference capital
from the Government to restore its capital ratios to the FSA's requirements.
This has diluted the existing shareholders equity and hence their share of
the profits, and there has been an associated restriction on the dividends
payable to shareholders. On the right is the cover of the 2008 Annual
Report, and the Chairman commences by talking about "an exceptionally
difficult period" in the history of the company and the pain experienced by
shareholders.
How did they "make it happen" to use the former slogan of RBS? Shareholders
would certainly like to know. The RBoS Shareholders Action Group has been
formed to look at these issues and to pursue any possible legal action to
gain recompense for shareholders, particularly in respect of the rights issue in May 2008. See this page for more information:
About , or this page for more details on the rights issue:
Rights . Go to this page to register your interest:
Membership
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