Can Someone Explain....

[ToraToraTora]

OK following the financial collapse fiasco, both RBS and LLoyds where bailed out, their share prices dumped to about 30p. In the interim LLoyds has done pretty well redeemed the government shares and started issuing dividends, steady profit, reached about 90p, currently < 52p. RBS got up to over £3, now £1.87 ish, still 72% national and lost £2bn. So why the disparity?

[fiction-factory]

Has there been some sort of share restructuring exercise at Lloyds, perhaps- I have a recollection of something. Maybe it also depends on what the relative prices were before the crash.
RBS were left in an awful mess by Fred Goodwin and his mistakes regarding the Dutch firm and are still paying for it.
These are perhaps just rambling thoughts- I don't really know

[ToraToraTora]

yes they were both in a state, before the crash their share prices hovered round the £3-£4 mark in the preceding decades.

[Gizmonster]

Just to go "slightly" off topic and not really answering your question .... if you look back to 2007 (??), RBS share price was £60 ish ..... ouch :(

[ToraToraTora]

was it? well that goes some way to explaining it!

[ubasses]

LLoyds was a solid Bank who in good times wanted to merge with Halifax. As the Banking world started to go belly up the then Government decided to urge them to go ahead and take on Halifax. Not enough due diligence was done and it brought them down. However after getting rid of the Chairman they had enough resources to slowly rebuild and get out of the mire.
RBS unfortunately had Fred Goodwin - bit of a megalomaniac who made some very bad purchases, Charter One in US and ABN Amro, so when the fall came they were not in a position to get themselves out of it.

[Gizmonster]

I've just checked:

http://moneyweek.com/prices-news-charts/company-share-price-chart-graph/RBS/

Click on 10y along the bottom. According to this chart, the price was over £70 in 2007 ..... OUCH !!!!