Why does Royal Bank of Scotland's market cap not reflect the shares outstanding or the equity on the balance sheet?

Question

I'm a novice investor that's looking at a UK bank. It's market cap according to popular websites such as Hargreaves Lansdowne and Yahoo finance is £12 billion (bn). The current share price is £1.04.

The bank has 6.04 bn shares outstanding. At a current price of £1.04, to me that's a market cap of £6.6bn.

Also, looking at the bank's balance sheet, it has £43bn in shareholder funds. I'm sitting here thinking if I'm right (which I'm probably not) that if you bought all of the outstanding shares, you'd get £43bn of assets for £12bn.

Why is there a discrepancy between the market cap and outstanding shares x current price?
What am I missing, surely you can't buy £43bn of assets for £12bn?

I'm assuming that not all of their loans will go to zero because of COVID-19.

Thanks

S Spring · Answer

For year 2019 assets they have 77.86B in cash, 288.23B in investments, and 337.64B in loans.

For year 2019 liabilities they have 113.33B in debt, 367.48B in deposits, and 199.67B in other.

That might look okay but their debt-to-equity ratio is 151.99 .

With a high debt-to-equity, the investment is usually an investment in income, as the P/E ratio, and in the dividend paid out. The shareholders are not like bondholders because the shareholders have votes.

Why does Royal Bank of Scotland's market cap not reflect the shares outstanding or the equity on the balance sheet?

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