HSBC and Standard Chartered scrap dividends, stocks plunge
Barclays, HSBC, Lloyds, RBS, Standard Chartered and Santander axed dividend payments after pressure from the regulator
Stocks impacted: HSBC (HSBA), Standard Chartered Bank (STAN)
HSBC, Standard Chartered and three other UK banks cancelled dividend payments after the banking regulator asked the lenders to axe planned payments to investors. HSBC said it will make no payouts or do any buybacks until at least the end of the year and warned that revenue and loan losses will be impacted in the first quarter from the coronavirus outbreak. The lenders had been due to pay out over £8 billion between them in 2019 dividends. The Prudential Regulatory Authority also asked banks and insurers not to pay senior staff bonuses this year. So far, none of the lenders provided details on how they would comply with this second request. After the announcement, HSBC and Standard Chartered PLC saw their shares plunge by 8.24% and 7.5% in London.
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