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RBS share price subdued as CEO search continues

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Royal Bank of Scotland Group’s (LON:RBS) share price has slipped marginally into the red in London this Friday, as the lender said that the search for a new boss continues. The comments came as its outgoing chief executive was appointed as CEO of National Australia Bank.

As of 09:06 BST, RBS’ share price had given up 0.13 percent to 230.40p, underperforming the broader UK market, with the benchmark FTSE 100 index having climbed 0.64 percent higher at 7,541.50 points. The group’s shares have given up more than two percent of their value over the past year, as compared with a near two-percent fall in the Footsie.

CEO search continues

RBS announced in a statement this morning that National Australia Bank has announced that Ross McEwan will assume the role of Chief Executive Officer. The news comes after McEwan said in April that he was stepping down as CEO of the FTSE 100 lender. The group said that he has a 12-month notice period extending to April next year and he will remain in position until a successor has been appointed and an orderly handover has taken place.

“We note today’s announcement that Ross will take over as CEO of National Australia Bank and congratulate him on this appointment,” RBS’ chairman Howard Davis noted in the statement, adding that the lender’s “search for a successor remains ongoing and the effective date of Ross’ departure will be confirmed in due course”.

Analysts on RBS

Barclays, which sees the company as ‘overweight,’ lowered its target on the RBS share price from 315p to 280p this week, while earlier this month, Deutsche Bank reaffirmed the company as a ‘buy’ without specifying a valuation on the shares. According to MarketBeat, the blue-chip group currently as a consensus ‘buy’ rating and an average price target of 295.15p.

RBS is scheduled to update investors on its half-year performance on August 2.

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