Europe Banks With 'Destiny in Their Own Hands' Favored: M&G's Somel

The transcript discusses the financial performance and future challenges of RBS, including leadership changes and the impact of Brexit. It also covers the challenges faced by Barclays in investment banking and the difficulties Deutsche Bank faces in the European market. The discussion extends to strategies for European banks, focusing on trading income and market control.

What was the operating profit pre-tax for RBS in the first quarter?

• 1.5 billion pounds

• 0.8 billion pounds

• 0.95 billion pounds

• 1.01 billion pounds

What major event is expected to impact RBS in the next two years?

• A merger with Deutsche Bank

• A new CEO appointment

• Brexit and potential Scottish independence

• Expansion into Asia

How is Brexit expected to affect the valuations of UK banks like RBS and Lloyds?

• Banks will face immediate bankruptcy

• Valuations will increase due to new trade deals

• Brexit is already priced in, so valuations may not change much

• Valuations are expected to drop significantly

What was a significant challenge for Deutsche Bank and Commerzbank?

• High interest rates

• Successful merger talks

• Low trading flow in Europe

• Strong competition from Asian banks

What strategic focus might banks like Commerzbank adopt in the current market?

• Increase trading income

• Expand retail network and reduce costs

• Invest heavily in cryptocurrency

• Merge with US banks