I have been away for a couple of days. That is not self aggrandisement at least not in my eyes. 'To make oneself greater'? I don't think so.
No, it means being self important. You'll have to remind me how a bank works? I thought it was our money they needed in order to run their business. And yet reading this statement you'd think it's them that's doing us a favour!
Dod101 wrote:They really believe that and that is the difference.
Yes, of course they do. And Fred Goodwin probably thought he was the master of the universe too back in 2007 around the same time as RBS was yielding 6-7% and people were expressing the same love and devotion to their dividend!
Dod101 wrote:They concentrate on the Far East and in particular in the Pearl River Delta. They are by far I think the strongest and most experienced bank based in the UK and were the only one to continue lending to the inter bank market throughout the 2008 crisis. In any case, companies are allowed to make these sorts of statements; they do it all the time.
Most companies don't need to put this kind of "mission statement" in their results announcements - leave it for the Annual Report with all its glossy pictures and marketing spiel that most shareholders never read anyway.
Dod101 wrote:No nose peg required whilst I enjoy their dividend and contemplate their prospects.
At this point I'm more concerned with preservation of capital but if you need the income you must accept the capital risk. Personally, if you need a 6% income I believe there are safer ways of getting it than bank equity dividends, particularly where the the bank in question is not growing revenue and the dividend is barely covered by earnings. You'd have to have a much sunnier outlook of the next few years than me to assume the dividend will not be cut and your capital not eroded. Bank equity has been a terrible investment (even including dividends) for the best part of 20 years and yet still people are attracted to it. Each to their own...
BTW I'm only replying as you addressed your post to me directly. I'm now on a self-imposed sabbatical from posting.
All the best, Si