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U.K. Banks Freed From BOE’s Pandemic Dividend Restrictions posted on Banking Sector Board

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idpickering
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U.K. Banks Freed From BOE’s Pandemic Dividend Restrictions posted on Banking Sector Board

#427253

Postby idpickering » July 13th, 2021, 7:53 am

Here; viewtopic.php?f=6&t=30295

Britain’s biggest banks will be able to increase shareholder payouts after the Bank of England removed restrictions imposed at the height of the pandemic to make sure lenders could weather deep losses.

The BOE said Tuesday that it is fully removing guardrails that limited dividends this year at HSBC Holdings Plc, Barclays Plc, Standard Chartered Plc and other top lenders. The central bank concluded the industry now has enough capital to resume payments as they wish.

The central bank’s Prudential Regulation Authority “concluded that the extraordinary guardrails within which it asked bank boards to determine the appropriate level of distributions in relation to full-year 2020 results are no longer necessary and have been removed with immediate effect,” according to a statement.


I put the item on that board as, although it mentions HSBC etc, it came across as being a more general item?
Either way, I'm sure HYPers who hold UK banks will be chuffed about this news.

Ian.

monabri
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Re: U.K. Banks Freed From BOE’s Pandemic Dividend Restrictions posted on Banking Sector Board

#427260

Postby monabri » July 13th, 2021, 8:27 am

Halle-bloomin-lujah!

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Re: U.K. Banks Freed From BOE’s Pandemic Dividend Restrictions posted on Banking Sector Board

#427341

Postby Vince » July 13th, 2021, 11:35 am

idpickering wrote:Here; viewtopic.php?f=6&t=30295

Britain’s biggest banks will be able to increase shareholder payouts after the Bank of England removed restrictions imposed at the height of the pandemic to make sure lenders could weather deep losses.

The BOE said Tuesday that it is fully removing guardrails that limited dividends this year at HSBC Holdings Plc, Barclays Plc, Standard Chartered Plc and other top lenders. The central bank concluded the industry now has enough capital to resume payments as they wish.

The central bank’s Prudential Regulation Authority “concluded that the extraordinary guardrails within which it asked bank boards to determine the appropriate level of distributions in relation to full-year 2020 results are no longer necessary and have been removed with immediate effect,” according to a statement.


I put the item on that board as, although it mentions HSBC etc, it came across as being a more general item?
Either way, I'm sure HYPers who hold UK banks will be chuffed about this news.

Ian.


Can't describe myself as chuffed, the government intervention against bank payouts seemed singularly punishing to shareholders in banks, which are private companies, the money allocated from 2019 was snatched from us a few weeks before it was to due to be paid, yet here we are, 15 months on and furlough is still gobbling up billions a month.

Grossly unfair in my opinion, some will say, the money is still there, to be used as boards see fit now, but past experiences show banks using billions to buy back shares, only to increase the give aways in shares as bonus's, the buybacks hardly resulted in a reduction in the number of shares, and I can't remember a buyback resulting in an increasing share price (Lloyds)

Its to be seen if banks start dishing out the accumulated unpaid divi's, but I personally won't hold my breath, but would love to be proven wrong.

Vince

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Re: U.K. Banks Freed From BOE’s Pandemic Dividend Restrictions posted on Banking Sector Board

#427345

Postby Dod101 » July 13th, 2021, 12:10 pm

I would say that the timing of the announcement is significant, just before the half yearly results are announced. It should give encouragement to banks to declare decent interim dividends over the next month or so.

The arguments have been made about the need for the intervention in the first place, but that is now history.

Dod

monabri
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Re: U.K. Banks Freed From BOE’s Pandemic Dividend Restrictions posted on Banking Sector Board

#427347

Postby monabri » July 13th, 2021, 12:15 pm

Dod101 wrote:I would say that the timing of the announcement is significant, just before the half yearly results are announced. It should give encouragement to banks to declare decent interim dividends over the next month or so.

The arguments have been made about the need for the intervention in the first place, but that is now history.

Dod


Yes, deliberate timing I'd say and corresponding with lifting of COVID-19 restrictions.

Sam Woods & the PRA are still not on my Christmas card list!

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Re: U.K. Banks Freed From BOE’s Pandemic Dividend Restrictions posted on Banking Sector Board

#427348

Postby bluedonkey » July 13th, 2021, 12:21 pm

C'mon HSBC, back to the status quo ante bellum!


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