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UK banks delay dividend at regulator’s request

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Christian Fernsby ▼ | April 1, 2020
HSBC, Royal Bank of Scotland Group Plc, Standard Chartered Plc, Barclays Plc and Lloyds Banking Group Plc axed their outstanding 2019 dividends and said there would be no payments in 2020 in similar announcements late Tuesday.
Standard Chartered
Bank   Standard Chartered
They also agreed to suspend any buybacks.

Topics: Banks UK

HSBC, while saying performance has been “resilient” in the first quarter, warned the virus would be a drag on revenue and increase expected loan losses at the start of the year.

The moves come after Prudential Regulation Authority wrote to lenders asking them to cancel payments, adding that it “expects banks not to pay any cash bonuses to senior staff, including all material risk takers.” The company statements didn’t mention bonuses.

The U.K.’s five biggest banks had planned to pay out 7.5 billion pounds ($9.3 billion) in dividends over the next two months.

Barclays was due to pay more than 1 billion pounds on Friday.


 

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