Banks & Divis

[monabri]

https://www.telegraph.co.uk/business/20 ... in-months/

"Bank dividend payments could be restarted within months in a boost to millions of small investors battered by the coronavirus meltdown."

"The Bank of England's Prudential Regulation Authority (PRA) announced the review just weeks after the chairman of state-owned NatWest said that rewards must come back to make the industry attractive to investors again."


"The Bank of England said: "The PRA regards distributions as an important and necessary part of the functioning of the banking system, but these decisions were a sensible precautionary step given the unique role of banks in supporting the wider economy through the period of economic disruption."


""The PRA will undertake its assessment of firms’ distribution plans beyond the end of 2020 in Quarter 4 2020.""

[Dod101]

HSBC reports its Interims next week and it will be interesting to see the results and whether they could have afforded a dividend. I thoroughly object to the interference from the PRA I must say, especially if the caution proves unnecessary.

They in any case are much more likely to be affected by the political situation in Hong Kong than the UK situation. Still think that HSBC should throw in its lot with China and move back to HK.

Dod

[Gengulphus]

https://www.telegraph.co.uk/business/2020/07/28/banks-could-free-restart-dividend-payments-within-months/

"Bank dividend payments could be restarted within months in a boost to millions of small investors battered by the coronavirus meltdown."

"The Bank of England's Prudential Regulation Authority (PRA) announced the review just weeks after the chairman of state-owned NatWest said that rewards must come back to make the industry attractive to investors again."

"The Bank of England said: "The PRA regards distributions as an important and necessary part of the functioning of the banking system, but these decisions were a sensible precautionary step given the unique role of banks in supporting the wider economy through the period of economic disruption."

""The PRA will undertake its assessment of firms’ distribution plans beyond the end of 2020 in Quarter 4 2020.""

This is IMHO pretty much a case of the Telegraph, the Bank of England and/or the PRA dressing up the bleeding obvious as news! Earlier this year, the PRA got the banks to announce commitments that they're not going to pay dividends until the end of 2020 (see e.g. the RNSes earlier this year by HSBC and Lloyds). Was anyone seriously expecting the PRA not to review whether they were going to continue that policy of getting the banks not to pay dividends somewhat in advance of their commitments coming to an end, i.e. in Q4???

Gengulphus