shareholders face a future of paltry payouts when regulators restore its powers to pay dividends as the bank's bosses press on with a costly revamp against a backdrop of a global recession and the threat of negative interest rates.
Chief Executive Noel Quinn also faces pressure to keep lending to struggling households and businesses while keeping capital in reserve to pay for the bank’s overhaul and cover any bad debts if non-performing loans spike. Between 2008 and 2018, it paid an average 47.2 cents but analyst forecasts supplied by Refinitiv suggest its annual dividend will plunge to 15 cents in 2020, before recovering to 29 cents in 2021 and 37 cents in 2022.
“In this context, we would expect a significant rebasing of dividend ... based on consensus, we see risks to the downside particularly if HSBC wants to retain a larger budget for a more radical restructuring at full-year results.”On March 31, as lockdowns stalled economic activity globally, HSBC scrapped its fourth interim payout for 2019 after the Bank of England blocked all big lenders from paying dividends or buying back shares in 2020 to conserve capital.
Banks are largely expecting to resume dividends in 2021 but it is unclear whether they will have full discretion over the size of those distributions.
What about their propensity for doing illegal stuff like propping up drug cartels in Mexico? That threatening anything? joinacreditunion
Who do think pays if Corp taxes are raised? It’s us Corp’s will pass taxes on, or they move out of the country. Tried of threads about heath care & SS. I wish the moderators would have fact checking available: fracking; BLM, police endorsements, guns, pack court & give aways.
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