HSBC And Other UK Banks Cut Dividends

HSBC shares dropped in early Hong Kong trading after it scrapped dividend payments and warned of losses in the first quarter due to the global coronavirus pandemic.

The bank’s shares slid more than seven percent, down to a low of HK39.80 at one point, bringing this year’s decline to over 30 percent.

Standard Chartered also fell over five percent.

A number of large British banks have agreed to cancel dividends in light of the pandemic to help them and their customers weather the economic downturn caused by the health crisis.

The Bank of England also ordered British lenders to cancel cash bonuses for executives.

Statements from banks, including Barclays, HSBC, Lloyds, Royal Bank of Scotland and Standard Chartered confirmed they would temporarily halt shareholder payouts and share buybacks for 2019 and possibly throughout 2020. (AFP)