- Executives buy about $1.4 million of stock after market rout
- Edinburgh-based bank has declined most among British lenders
Royal Bank of Scotland Group Plc senior executives, including Ross McEwan, bought almost 1 million pounds ($1.4 million) of shares after the stock slumped the most among U.K. lenders this year.
Chief Executive Officer McEwan and Chief Financial Officer Ewen Stevenson purchased 200,000 shares each, valued at a combined 892,400 pounds, while Chairman Howard Davies acquired 40,000 shares for 88,840 pounds, the Edinburgh-based lender said in a statement on Monday.
The RBS executives are the latest senior bankers to invest in their firms as a show of confidence after billions of dollars were wiped off the value of lenders around the world amid fears over slowing global economic growth. JPMorgan Chase & Co. CEO Jamie Dimon acquired about $26.6 million of shares earlier this month, sparking a stock rally, while Citigroup Inc. CEO Mike Corbat and Chairman Michael O’Neill bought about $1 million of their bank’s shares apiece in January after they fell to the lowest in more than three years.
RBS was 0.9 percent lower at 224.5 pence at 3:03 p.m. in London trading and are down 26 percent this year. The stock fell 7 percent on Friday after the bank posted its eight consecutive annual loss and said it would take longer than originally planned to resume shareholder payouts.
The 12-month consensus price target among analysts for the stock is 315.04 pence, according to data compiled by Bloomberg. Chancellor George Osborne sold 2.1 billion pounds of stock in August at 330 pence a share, leaving the U.K. with 73 percent of the lender. That sale was below the 407 pence break-even price at which the government says it would break even on its 45.5 billion-pound bailout of the bank at the height of the financial crisis.