Royal Bank of Scotland Has An Earnings Problem: Investec

The Royal Bank of Scotland Group plc (NYSE:RBS) (LON:RBS) has outperformed other UK banks and the FTSE 100, despite steadily declining core profits and net asset value. The stock had a correction at the end of January, but has since bounced back by 8% making some analysts argue for a tactical short ahead of the FY13 earnings results coming out on February 27. Investec analyst Ian Gordon recommended that investors close their short positions against Royal Bank of Scotland Group plc (NYSE:RBS) (LON:RBS) in January, but now says that there is some “misplaced euphoria ahead of results,” causing him to drop…