HSBC Annual Results 2019 media release

[Dod101]

PD

Yes monabri posted them above. I know what you are saying but they say' If you do not cancel the dividends we will consider using our supervisory powers'. What do you think that means? Drive them to do so one way or another.

This must surely have been approved above this fellow but I wonder how much higher and has the PRA the right anyway?

This could wreck the UK banking system. What do we think that Blackrock who are or were a big shareholder in HSBC are going to think of that? Why should anyone except the State hold HSBC shares? I wonder what will happen to the share price in a few hours time? They are quoted round the world. HK opens quite soon and that would give us a feel for where the price is going.

I am quite disgusted, Corbyn could have written it. Sam Woods probably voted for him and has taken advice from him.

Dod

[monabri]

2nd letter of complaint sent... once again email marked "complaint".

Text below from myself is pretty curt!

"It is apparent from the tone of the letters addressed to the banks that the tone was a veiled threat!

"The PRA stands ready to consider use of our supervisory powers should your group not agree to take such action."

Surely this interference is beyond the  role of the PRA ?

Yours etc.

[peterh]

I am quite disgusted, Corbyn could have written it. Sam Woods probably voted for him and has taken advice from him.

Are you being serious? What influence could the outgoing leader of a party that's been out of power for 10 years possibly have? Have a closer look at the occupants of Downing Street.

[Dod101]

I am quite disgusted, Corbyn could have written it. Sam Woods probably voted for him and has taken advice from him.

Are you being serious? What influence could the outgoing leader of a party that's been out of power for 10 years possibly have? Have a closer look at the occupants of Downing Street.

No I'm not being serious but it is the sort of thing that he could have written and if it came from Downing Street which is quite possible then I think they have badly misjudged the reaction. Who would hold shares in UK banks now? HSBC 's shares are quoted in Hong Kong, Bermuda France and London as well as probably New York. I can assure you that the HK shareholders will be as appalled as I am.

Dod

[Wizard]

I did tell you earlier that it would be the BoE that decided and not the individual banks. This will ultimately have been agreed by Bailey and Sunak. If you have any recollection of Bailey's part in the Lloyd's ECN saga it will be completely clear he has no interest in what happens to retail investors. He has the job he always wanted, he will now be working to secure the knighthood and may even see this as an opportunity to secure a life peerage.

[idpickering]

HSBC Holdings Plc plunged in Hong Kong trading after axing its dividend and warning revenue and loan losses will be impacted from the virus outbreak that has halted economic activity across large parts of the globe.

Standard Chartered Plc also tumbled after it joined Royal Bank of Scotland Group Plc, Barclays Plc and Lloyds Banking Group Plc in canceling outstanding 2019 dividends and buybacks and saying there would be no payments in 2020, at the urging of U.K. regulators.

HSBC’s shares slid 8.7% to HK$40.30 as of 11:52 a.m. in Hong Kong, bringing this year’s decline to 33.7%.

https://www.bloomberg.com/news/articles ... ium-Europe

nb you only get two free views of items on Bloomberg.

Ian.

[idpickering]

Statement on 2019 fourth interim dividend and 2020 ordinary share dividends

The Board of HSBC Holdings plc (‘HSBC’) has today received from the Bank of England through the Prudential Regulation Authority (‘PRA’) a written request not to pay, in HSBC's case, the fourth interim dividend in respect of 2019. Similar requests have been made to other UK incorporated banking groups.

The Board recognises the current and potential material impact on the global economy as a result of the coronavirus pandemic and the important role that HSBC has in helping its customers to manage through the crisis and to have resources to invest when recovery occurs. HSBC has a strong capital, funding and liquidity position; however, there are significant uncertainties in assessing the time period of the pandemic and its impact.

The Board has therefore met to discuss the written request from the PRA and, in response to the request, has cancelled the fourth interim dividend of US$0.21 per ordinary share, which was scheduled to be paid on Tuesday, 14 April 2020. The Board regrets the impact this cancellation will have on our shareholders, including our retail shareholders in Hong Kong, the UK and elsewhere.

The Board has also decided that until the end of 2020 we will make no quarterly or interim dividend payments or accruals in respect of ordinary shares, or undertake any share buy-backs in respect of ordinary shares.

The Board will review the ordinary share dividend policy and payments in respect of 2020 once the full impact of the pandemic is better understood, and economic forecasts for global growth in future years are clearer. These factors will be considered, alongside analysis of our own internal financial projections and modelling.

https://www.hsbc.com/media/media-releas ... -dividends

[Dod101]

Write to Mark E Tucker
Group Chairman
HSBC Holdings plc
8 Canada Square
London
E14 5HQ

or better still email the letter to Investorrelations@hsbc.com

I said that they have allowed themselves to be bullied into this and ignored one important stakeholder, the shareholder, whose interest has just been brushed aside.

See the letter monabri has produced from Sam Woods at the PRA.

Dod

[Dod101]

https://www.hsbc.com/media/media-releas ... -dividends

This is the full announcement by HSBC

Dod

[Dod101]

Share price down 7.5% at the London opening, reflecting the movement in Hong Kong. Come on in all you bargain hunters.

Dod

[Arborbridge]

Write to Mark E Tucker
Group Chairman
HSBC Holdings plc
8 Canada Square
London
E14 5HQ

or better still email the letter to Investorrelations@hsbc.com

I said that they have allowed themselves to be bullied into this and ignored one important stakeholder, the shareholder, whose interest has just been brushed aside.

See the letter monabri has produced from Sam Woods at the PRA.

Dod

Thanks for that groundwork, Dod. It won't do much good, but I would join you in urging shareholders to write. It might just make them realise they should re-instate just as soon as they can.

I can't help feeling this is all unecessary - is this what they call "virtue signalling" : making a jesture to show how good you are?

Maybe it's the PRA we also need to write to, (ideas?)for they seem to be the troublemakers from our POV. I see they are at it again with the insurance companies which will blast another big hole in our incomes.

Arb.

[Dod101]

Late last evening monabri dug out a lot of stuff and he and I exchanged a fair bit with others joining in. You can read it on different threads if you want but I was disappointed to read the letter which Sam Woods who is apparently the CEO of the PRS wrote to the various banks bullyng them to cancel the dividends for the remaining 2019 dividends and the whole of 2020. Quote 'The PRA stands ready to consider use of our supervisory powers should your group not agree to take such actions' They even enclosed a 'possible form of words' for the banks' statement which they expected them to make by 21.00.

I have sent an email to Mark Tucker and a letter to Sam Woods. No it will not do any good but I want them to remember that short of nationalisation, the banks are dependent on their shareholders. I asked Tucker to tell me why anyone would hold his shares now, considering their record and no dividend for over a year.

Sam Woods
CEO
Prudential Regulation Authority
20 Moorgate
London
EC2R 6DA

Dod

[scrumpyjack]

It is of course quite inevitable in these extraordinary times as bank shareholders are always at the bottom of the queue/priority list, both in good times and bad.

I would not be surprised if the same thing happens with insurance companies (Aviva, L&G, Pru etc etc)

It would surely now be sensible, in a few months time and not as an immediate reaction to this, for HSBC and Pru to move their domicile to the far east. That is where most of their business is and they really don't get any benefit from exposing themselves to the overweaning authority of UK regulators.

At least we can gain some comfort that the cash bonuses have already been paid to management so they won't have to suffer. Also that I expect any deferred bonuses issued by way of shares will be at the most depressed share price, thus giving them an extra ramp up when normality eventually returns (and further diluting other shareholders).

[monabri]

Copy of email sent to IR at HSBC

"Sir,

As a shareholder, I am writing to you to express deep concern over the role of the PRA and it's influence regarding the cancellation of dividends.  The letter from the PRA was clearly a veiled threat. 

I draw to your attention that many retail investors are retirees relying on dividends to supplement their state pension. I also draw your attention to your dividend record in recent years...one of static dividends.  The current cancellation of dividends in response to the letters from the PRA indicates that the UK banks are simply a risk too far for my (dwindling) retirement income. I would ask Mr Tucker for a response as to why investors should continue to invest in his company? 

(Usual sign off)

[Dod101]

It is of course quite inevitable in these extraordinary times as bank shareholders are always at the bottom of the queue/priority list, both in good times and bad.

I would not be surprised if the same thing happens with insurance companies (Aviva, L&G, Pru etc etc)

It would surely now be sensible, in a few months time and not as an immediate reaction to this, for HSBC and Pru to move their domicile to the far east. That is where most of their business is and they really don't get any benefit from exposing themselves to the overweaning authority of UK regulators.

At least we can gain some comfort that the cash bonuses have already been paid to management so they won't have to suffer. Also that I expect any deferred bonuses issued by way of shares will be at the most depressed share price, thus giving them an extra ramp up when normality eventually returns (and further diluting other shareholders).

The HSBC management that undertook their investigation re domicile have now retired but those now in charge must be rueing the day! I reckon Singapore, even with its own restrictive regulations, would be better than here. I would not like to see them returning to HK and Singapore would welcome them with open arms; another one up on HK!

Dod

[scrumpyjack]

...No it will not do any good but I want them to remember that short of nationalisation, the banks are dependent on their shareholders.

Dod

Of course the problem is that the banks are NOT dependent on their shareholders. They only need the shareholders if they want to have a rights issue, otherwise they already have shareholders funds and shareholders are fairly powerless.

I suppose shareholders could pass a resolution to wind up the company - that would be interesting! But if they tried that I guess HMG would nationalise it in the public interest. So basically shareholders are stuffed. As we always knew banks are run for the benefit of their managers and directors.

[monabri]

Shareprice back to April 2016 but no divi.

LGEN, SLA (!) & Aviva tanking as well. Expect them to follow with divi cuts.

[Dod101]

Of course the problem is that the banks are NOT dependent on their shareholders. They only need the shareholders if they want to have a rights issue, otherwise they already have shareholders funds and shareholders are fairly powerless.

I suppose shareholders could pass a resolution to wind up the company - that would be interesting! But if they tried that I guess HMG would nationalise it in the public interest. So basically shareholders are stuffed. As we always knew banks are run for the benefit of their managers and directors.

Well this is not exactly helpful to the managers or directors. If it were not for the shareholders there would be no company. It is not a mutual society. Certainly at current prices they (none of the banks) could have a rights issue even if they wanted to.

Dod

[Wizard]

I am genuinely taken aback by the reaction of typically balanced posters. Was this really unexpected? Was Bailey's track record not clear?

To be honest I do not think it was without logic. The BBC are this morning thousands of businesses on the verge of collapse. The Banks and their regulator cannot be sure what the impact will be on the banks, so holding on to capital makes sense.

[Darka]

The Banks and their regulator cannot be sure what the impact will be on the banks, so holding on to capital makes sense.

I don't like the dividend cuts either, but I do agree with you, it does make sense and there is nothing we can do about it.