One in ten polls quick sale of government stake in RBS, poll suggests | Business

Survey finds fewer than one in ten are in favor of a quick sale of the government's majority stake in Royal Bank of Scotland, while two-thirds fear that the bank will not serve the public interest once it is in private hands.

A YouGov poll, commissioned by the Positive Money campaign group, reveals that 9% of respondents believe that the UK government should sell its stake in the near future in order to get its money back, even if it is of a loss for the public. stock Exchange.

This compares with 34%, who believe that the Treasury should wait for the RBS share price to recover before selling, while 32% believe that privatization efforts should be delayed while RBS is run like a bank. nationalized.

The results are ahead of the bank's annual results on Friday, and RBS is expected to record its second annual profit since the rescue of its government by £ 45 billion in 2008. The city expects a profit nearly doubled to 1 , £ 4 billion in 2018, from £ 752 million a year earlier. This has sparked rumors that the Treasury is considering another sale of shares that would reduce its 62% stake in RBS.

The Treasury plans to divest the full public equity by 2023-24, but is expected to lose about £ 28.5 billion in the process, according to the Treasury's independent forecaster, the Bureau of Budget Responsibility. This loss is the result of a decline in the share price, the Treasury having paid 502 euros per share in 2008. The RBS shares were trading at 243 euros Thursday morning.

The bank has also been authorized to buy up to 4.99% of government shares, about £ 1.4 billion, as part of efforts to reduce public participation. in the lender. The movement received mbadive support from shareholders at a general meeting in Edinburgh earlier this month.

The most recent survey – which included responses from 2,000 adults – also indicated that 58% of respondents thought that RBS would not be managed in the public interest if it returned to private property. This is compared to 12% who believe that would be the case.

This reflects the continuing mistrust of the public towards banks more than 10 years after the financial crisis. A separate survey conducted by YouGov in 2013 showed results similar to those of the last survey: 9% of respondents were in favor of a short-term sale.

Positive Money has launched a public petition urging Chancellor Philip Hammond to cancel any subsequent sale of RBS shares and to maintain public ownership of the bank for the purpose of "serving the public interest".

Fran Boait, executive director of the campaign group, said: "The government has the opportunity to ensure that, in the future, RBS will act in the public interest. A large number of improvements are possible, ranging from the transfer of its loans to SMEs to expanding access to banking services in currently under-served communities. "

Unions have already announced their intention to make the granting of loans by RBS mandatory to small businesses using public funds. Economic Treasury Secretary Jonathan Reynolds recently said that a Labor government would stop selling new shares but would not participate in the day-to-day management of RBS.

A spokesman for the Ministry of Finance said: "The government has intervened in RBS to protect the savings and businesses of citizens. But private investors, not taxpayers, should bear the risk of companies such as RBS, and that is why we are committed to making the bank a private property. But we will only sell RBS shares when it represents a good value for the taxpayer. "

A spokesman for RBS said, "The timing and price of any sale of government shares fall under the Treasury. We continue to focus on creating a bank that offers benefits to shareholders, customers and the UK economy. "