The question of privatization led to the exit of chief executive Stephen Hester last week, according to chairman Sir Philip Hampton, who cited “Treasury involvement” in the decision. Hester — who played a key part in the restructuring of the group — is expected to leave by the end of the year, prompting much uncertainty over the direction of the bank moving forward.
Royal Bank of Scotland Group plc (ADR) (NYSE:RBS)’s May interims showed that the bank had surged back into the black in the first quarter, punching pre-tax profit of £826 million against a pre-tax loss of £1.5 billion in the first three months of 2012. But falling profitability at the core — profits from its U.K. Retail and U.K. Corporate divisions slumped 63% in quarter one — casts a shadow over whether the bank can keep its financial resurgence on track.
The article How Royal Bank of Scotland Measures Up As a GARP Investment originally appeared on Fool.com is written by Royston Wild.
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