Royal Bank of Canada T.RY

RE:British Banks Suspend Dividends

[george2010]

Sad because a lot of older people rely on dividends to live.

alkhor wrote: Not sure if Preferred Shares are affected

UK Banks Scrap Shareholder Distribution: US to Follow Suit?

 

One has to wonder if Canadian banks will ponder suspending dividends as well.  If so, it'll certainly take the shine off Canadian banks as being "superior" in times of trouble.  We dodged the bullet during the great financial crisis due to regulations but regulations might not shield the industry against the effects of a global pandemic.  Very scary scenario.

 

 

https://www.zacks.com/stock/news/849087/uk-banks-scrap-shareholder-distribution-us-to-follow-suit?art_rec=quote-stock_overview-zacks_news-ID01-txt-849087 

 

 

In a significant move, major U.K.-based banks have decided to suspend all types of shareholder distributions. This is likely to act as a buffer against expected losses from economic slowdown, driven by the global coronavirus pandemic.

Suspension of Dividends & Share Buybacks

In a coordinated move, Barclays (BCS - Free Report) , Royal Bank of Scotland (RBS - Free Report) , HSBC Holdings (HSBC - Free Report) , Standard Chartered and Lloyds Banking Group (LYG - Free Report) announced the suspension of their outstanding 2019 dividend payments. In aggregate, these five banks were due to pay roughly £8 billion ($9.3 billion) as dividends through May 2020, with HSBC being the biggest payer at £4.2 billion.