Like Tree73Likes

Covid-19: HSBC / SC - Dividends & Results

Reply
Page 1 of 12 1 2 3 4 9 ... LastLast
  1. #1

    Join Date
    Dec 2002
    Location
    ???
    Posts
    32,122

    Covid-19: HSBC / SC - Dividends & Results

    Spotted in the Guardian live blog...

    Not sure if they have ruled out pay raises.. But bonus are off the table this YEAR.

    Britain’s biggest banks have agreed to scrap payouts to shareholders and are expected not to pay out any bonuses to senior staff, after a request from the Bank of England.

    The Prudential Regulation Authority, which is part of the Bank, said Standard Chartered, NatWest, Santander, the Royal Bank of Scotland, Nationwide, Lloyds, HSBC and Barclays have all agreed to drop their dividends and share buybacks until the end of the year, and cancel outstanding dividends from 2019.
    From HSBC IR media section..


    The Board has therefore met to discuss the written request from the PRA and, in response to the request, has cancelled the fourth interim dividend of US$0.21 per ordinary share, which was scheduled to be paid on Tuesday, 14 April 2020.


    The Board regrets the impact this cancellation will have on our shareholders, including our retail shareholders in Hong Kong, the UK and elsewhere.

    https://www.hsbc.com/-/files/hsbc/in...ds.pdf?noembed

    I expect many more companies to reduce or drop their dividends this year.. Will try and keep track of some highlights here..
    Last edited by shri; 01-04-2020 at 05:20 AM.
    Kowloon72 and PetravanderVegt like this.

  2. #2

    Join Date
    Dec 2002
    Location
    ???
    Posts
    32,122

    From Stan Chart's IR site...

    Standard Chartered PLC (the Group) announces that in response to a request from the Prudential Regulation Authority and as a consequence of the unprecedented challenges facing the world due to the COVID-19 pandemic, its board has decided after careful consideration to withdraw the recommendation to pay a final dividend for 2019 of 20 cents per ordinary share and to suspend the buy-back programme announced on 28 February 2020.

    Furthermore, no interim dividend on ordinary shares will be accrued, recommended or paid in 2020. The board’s recommendation regarding a final dividend in 2020 will take into account the financial performance of the Group for the full year and the medium-term outlook at that time.
    https://www.sc.com/en/media/press-re...w-commitments/

  3. #3

    Join Date
    Jun 2018
    Posts
    197

    Let's see what the markets do in response to the HSBC and other banks' dividend cuts. It's been obvious to those of us in the sector for a couple of weeks that this would be coming... The only moderate surprise is the cancellation of the last instalment of 2019's divi. If it wasn't substantially priced in then all professional investors are idiots...


  4. #4

    Join Date
    Dec 2002
    Location
    ???
    Posts
    32,122
    Quote Originally Posted by Peaky:
    Let's see what the markets do in response to the HSBC and other banks' dividend cuts. It's been obvious to those of us in the sector for a couple of weeks that this would be coming... The only moderate surprise is the cancellation of the last instalment of 2019's divi. If it wasn't substantially priced in then all professional investors are idiots...
    The cancellation of the 2019 dividend was more than a "moderate surprise" I think. I think any investor right now has not only factored in dividend cuts, but also a certain amount of an extinction level event in terms of both HSBC and SC's books and general inefficiency.

    Shareholder wealth destruction has been going on for a while!
    nivantj and makeITcount like this.

  5. #5

    Join Date
    Dec 2002
    Location
    ???
    Posts
    32,122

    Also, got an alert from someone who has money in HSBC's perpetual bonds..

    Skimming over their T&Cs..

    Discretionary Interest Payments

    Interest on the Securities will be due and payable at our sole discretion, and we will have sole and absolute discretion at all times and for any reason to cancel (in whole or in part) any interest payment that would otherwise be payable on any interest payment date (the "Discretionary Interest Payment Right").

    If we do not make an interest payment in respect of the Securities on the relevant interest payment date (or if we elect to make a payment of a portion, but not all, of such interest payment), such non-payment will evidence the exercise of our discretion to cancel such interest payment (or the portion of such interest payment not paid), and accordingly such interest payment (or the portion thereof not paid) will not be due and payable. For the avoidance of doubt, if we provide notice to cancel a portion, but not all, of an interest payment in respect of the Securities, and subsequently we do not make a payment of the remaining portion of such interest payment on the relevant interest payment date, such non-payment will evidence the exercise of our discretion to cancel such remaining portion of such interest payment, and accordingly such remaining portion of the interest payment will also not be due and payable.

    Non-Cumulative Interest Payment

    Any interest cancelled or deemed to have been cancelled (in each case, in whole or in part) will not be due and will not accumulate or be payable at any time thereafter, and the securityholders will have no rights thereto or to receive any additional interest or compensation as a result of such cancellation or deemed cancellation.
    No clue what happens here, but do know some oldies who have put some cash in here for their retirement income.

  6. #6

    Join Date
    Dec 2002
    Location
    ???
    Posts
    32,122
    Original Post Deleted
    - yes, I agree.

    A few months ago an elderly person we know was wondering "should I sell my apartment and put money in these perpetual bonds - can make so much more money than my rental!" - my answer was a politer version of "fuck no...".

    Another elderly friend with no real income, sold a village house a couple of years ago was told by his private banker "put the money in HSBC shares... you'll get a good income". I have to check in on them today.

  7. #7

    Join Date
    Jul 2004
    Posts
    3,624

    Small rant:- Its an annoying news particularly knowing how HSBC blows money internally on overpaid salaries/bonuses, internal empire building politics among teams, random budgets for technological development/enhancement where leaders have no clue where and how to use money wisely and no clear direction/goal from ever changing top management etc etc and now shareholders pay the price for it.. For its finance management, money laundering and leverage etc, leave it to someone whoever wants to release some steam..

    shri, makeITcount, tck and 2 others like this.

  8. #8

    Join Date
    May 2019
    Posts
    449

    Thanks for sharing, shri. Would have missed this otherwise. Not good news!

    PetravanderVegt likes this.

  9. #9

    Join Date
    Oct 2006
    Location
    Hong Kong
    Posts
    13,964

    Not really surprised. Basically the regulators are saying to the banks (an hopefully other bailed out industries) if you want our bail out money, time to stop bleeding money via dividends and share buybacks. Regulators are asking these companies to shore up defenses now and make sure they remain as liquid as they can.

    Perps while bonds, for many are in effect treated as equity.

    Probably not the time and place to comment on the internal bureaucracy of well, basically any organisation, afraid its just part and parcel of any company or organisation.

    greenmark likes this.

  10. #10

    Join Date
    Dec 2002
    Location
    ???
    Posts
    32,122

    @nivantj - I think this is the new "hotdesk" innovation some shareholders are contemplating for their management.

    rant over!

    Name:  512px-Dunk_tank.jpg
Views: 320
Size:  71.4 KB

    nivantj likes this.

Reply
Page 1 of 12 1 2 3 4 9 ... LastLast