Do Tomorrow’s Results Matter for Royal Bank of Scotland Group plc (ADR) (RBS)

On the other hand, Royal Bank of Scotland Group plc (ADR) (LON:RBS) is currently valued at around half its stated book value, equivalent to one-third of the bank’s historical average rating. If an investor felt confident that RBS’s government-backing and importance to the U.K. economy makes the bank ‘too big to fail’, an argument could be made for a deep-value investment.

The bottom line
Whether you’re confident of the long-term story at RBS, or cannot bear the lack of transparency at modern banks, we’re brought back to the original question. What can we expect from RBS’s results this Friday, or even this year?

Where 2013 is concerned at least, judging by the lack of consensus, perhaps investors should continue to ‘expect anything’ in the short-term results. While the bank restructures, it might be impossible to say how RBS’s results will appear from one quarter to the next.

Evaluating the long-term future earning power of RBS, if possible at all, is surely the key to coming to a rational investment decision. This may be something you, personally, have to determine for yourself.

The article Do Tomorrow’s Results Matter for Royal Bank of Scotland originally appeared on Fool.com.

Mark does not own any share mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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