How Royal Bank of Scotland Group plc (ADR) (RBS) Measures Up As a GARP Investment

The question of privatization led to the exit of chief executive Stephen Hester last week, according to chairman Sir Philip Hampton, who cited “Treasury involvement” in the decision. Hester — who played a key part in the restructuring of the group — is expected to leave by the end of the year, prompting much uncertainty over the direction of the bank moving forward.

Royal Bank of Scotland Group plc (ADR) (NYSE:RBS)’s May interims showed that the bank had surged back into the black in the first quarter, punching pre-tax profit of £826 million against a pre-tax loss of £1.5 billion in the first three months of 2012. But falling profitability at the core — profits from its U.K. Retail and U.K. Corporate divisions slumped 63% in quarter one — casts a shadow over whether the bank can keep its financial resurgence on track.

The article How Royal Bank of Scotland Measures Up As a GARP Investment originally appeared on Fool.com is written by Royston Wild.

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