RBS share price: Deutsche Bank expects £11bn in returns over three years

Deutsche Bank reckons Royal Bank of Scotland Group (LON:RBS) could return £11 billion to shareholders over the next three years, Proactive Investors has reported. The comments came as the analysts retained their bullish stance on the part government-owned lender in the wake of the company’s full-year results last week.

RBS’ share price has climbed higher in London in today’s session, having gained 0.79 percent to 254.00p as of 13:45 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.52 percent lower at 7,182.12 points.

Deutsche Bank still bullish on RBS

Deutsche Bank, which sees RBS as a ‘buy,’ boosted its price target on the shares from 276p to 296p today. Proactive Investors quoted the analysts as commenting that they expect  £11 billion of capital distribution over 2019 to 2021, which represents about 36 percent of the company’s market capitalisation. The comments came after the bailed-out lender posted a rise in full-year profit on Friday and cheered investors with a special dividend.

The broker added that the capital return in particular was well above consensus and its forecasts for 4Q at 11p, which made RBS “one of the few banks in recent years in Europe to have surprised positively on capital return, and we think the decision by management to pay a large special dividend and not wait for Brexit / a government placement is a sign of confidence and intent on capital distributions”.

Other analysts on blue-chip lender

Jefferies reaffirmed RBS as a ‘buy’ on Friday, with a 341p price target on the shares. According to MarketBeat, the bailed-out lender currently has a consensus ‘buy’ rating and an average price target of 305.92p.

As of 14:21 GMT, Tuesday, 19 February, Royal Bank of Scotland Group share price is 254.00p.