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RBS/Brexit: miracles and portents

RBS has impressive core tier one equity of 16.2 per cent of risk-weighted assets. Regulators stipulate 11 per cent, and RBS has a precautionary target of 14 per cent for 2021. Each percentage point of CET1 is worth around £2bn. That suggests the bank could pay out more than £2.2bn in 2019 and 2020, equivalent to a 7 per cent yield, without accounting for further capital accumulation.

A lesser miracle is an RBS valuation — 0.8 times tangible asset value — now justifiably up with peers it trailed for so long.