HSBA

[monabri]

https://www.investegate.co.uk/hsbc-hold ... 30023766O/

(I noticed this announcement this morning..- posted on the Company Shares News board.)

"Pursuant to Rule 13.43 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, notice is given that a meeting of a committee of the Board of Directors of HSBC Holdings plc will be held on 23 February 2021 (the 'Board Meeting') to consider the announcement of the final results for the year ended 31 December 2020 and to consider the payment of any dividend for the year ended 31 December 2020".

[absolutezero]

And what if the Bank of England the UK financial regulators don't want them to pay a dividend?
Fight?!

[Dod101]

That is of course simply a formality because that is the day that they announce their results for 2020. It will be very interesting to see if they are proposing paying a dividend and if so how much.

Dod

[scrumpyjack]

As I recall the PRA in December announced a formula setting the maximum for bank dividends for 2020

The PRA said that it expects that “any distributions would not create excess vulnerabilities to stress for a given bank or impede its ability or willingness to support households and businesses”.

In line with this, the PRA has capped payouts at 25% of a bank’s cumulative profits over the previous two years or 20 basis points of risk-weighted assets as at the end of 2020, whichever is higher.

So from that 25% you would need to subtract dividends already paid. As I recall it left virtually nothing in the case of Barclays and the same is probably true for HSBC

[scrumpyjack]

I wonder if they will give any update on the possibility of splitting HSBC as it is very difficult for one company to satisfy the requirements of the Chinese Government and also western governments/ public opinion.

[Dod101]

I agree about the dividend unfortunately, even although HSBC is probably one of the best capitalised of any of the UK banks. I would expect them to have made representations if the PRA formula produces an insignificant dividend. They have an army of shareholders in HK eager for the dividend and they have said somethimg along the lines that it 'would be more than a token'.

It would surely be surprising if they said anything more than that they were 'considering their options re a return to HK, a split or whatever. Or maybe say nothing at this stage. They ought to be coming up with their detailed strategy re reorganising parts of the business anyway because that was postponed when Covid appeared last year.

Dod

[monabri]

As I recall the PRA in December announced a formula setting the maximum for bank dividends for 2020

The PRA said that it expects that “any distributions would not create excess vulnerabilities to stress for a given bank or impede its ability or willingness to support households and businesses”.

In line with this, the PRA has capped payouts at 25% of a bank’s cumulative profits over the previous two years or 20 basis points of risk-weighted assets as at the end of 2020, whichever is higher.

So from that 25% you would need to subtract dividends already paid. As I recall it left virtually nothing in the case of Barclays and the same is probably true for HSBC

Dividends for year end 12/2020 were a round number anyway so isn't the consideration to the Q4 divi?

Edit...there's always a possibility of a "special"...(clicks tongue )

Code: Select all

Year End | Q1     | Q2     | Q3     | Q4     | Special | Total  | Growth
12/2020  | 0.00¢  | 0.00¢  | 0.00¢  | tbc    |       - | tbc    | tbc   
12/2019  | 10.00¢ | 10.00¢ | 10.00¢ | 0.00¢  |       - | 30.00¢ | -41.18%
12/2018  | 10.00¢ | 10.00¢ | 10.00¢ | 21.00¢ |       - | 51.00¢ |   0.00%
12/2017  | 10.00¢ | 10.00¢ | 10.00¢ | 21.00¢ |       - | 51.00¢ |   0.00%
12/2016  | 10.00¢ | 10.00¢ | 10.00¢ | 21.00¢ |       - | 51.00¢ |   0.00%
12/2015  | 10.00¢ | 10.00¢ | 10.00¢ | 21.00¢ |       - | 51.00¢ |   2.00%