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HSBC & UBS Provide Updates on Shareholder Distributions
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HSBC Holdings plc’s (HSBC - Free Report) chief financial officer, Ewen Stevenson, has said that the bank will likely resume share buybacks in the second half of 2023. HSBC, which restricted capital distributions during the pandemic, wants to boost payouts in order to enhance shareholder value.
Another foreign bank, UBS Group AG (UBS - Free Report) , has said that it will adjust its accrual for the 2022 ordinary dividend from 51 cents per share to 55 cents, marking an increase of 10% from the previous year. UBS’ board of directors intends to propose the dividend for approval at the 2023 annual general meeting.
Earlier this year, HSBC had said that buybacks would be unlikely in 2022. It also confirmed that the bank would begin to return excess capital to shareholders over what was required to execute its strategy in future years.
HSBC’s $2-billion repurchase program (announced in October 2021) concluded in April 2022, whereas its $1-billion share repurchase plan (announced during 2021 results) concluded in July 2022.
At an event, Stevenson stated, “Fundamentally, our approach on distributions is to view dividends as the primary basis of returning capital to shareholders, and that we use buybacks to soak up surplus capital.”
This February, HSBC approved a second interim dividend of 18 cents per share, making a total of 25 cents per share as dividend for 2021. Moreover, its board of directors approved an interim cash dividend of 9 cents per share for the first half of 2022.
HSBC intends to revert to paying quarterly dividends in 2023, although dividends for the first three quarters are likely to be initially reinstated at a lower level than the historical quarterly dividend of 10 cents per share.
UBS’s board of directors announced a share repurchase program for 2022 of up to $6 billion, valid for two years. As of Sep 9, 2022, UBS repurchased $4.1 billion worth of shares.
Now, UBS expects share repurchases to exceed the $5-billion goal set earlier for 2022.
So far this year, shares of HSBC have gained 4.4%, while UBS has declined 5.6%. The industry has lost 7% over the same period.
Barclays PLC (BCS - Free Report) continues to reward shareholders with enhanced capital deployments. The bank announced a half-year dividend of 2.25 pence per share. For 2021, it announced a dividend of 6 pence per share, including a 2021 dividend of 4 pence per share, which was paid out on Apr 5, 2022. In 2019, BCS announced a dividend (in aggregate) of 9 pence per share, which marked an improvement from 6.5 pence in 2018, and was thrice the level of 2017 as well as 2016.
Barclays intends to initiate further share buybacks of up to £500 million. Its currently active £1-billion share buyback plan (announced along with 2021 results) is expected to be completed before the end of September 2022.
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HSBC & UBS Provide Updates on Shareholder Distributions
HSBC Holdings plc’s (HSBC - Free Report) chief financial officer, Ewen Stevenson, has said that the bank will likely resume share buybacks in the second half of 2023. HSBC, which restricted capital distributions during the pandemic, wants to boost payouts in order to enhance shareholder value.
Another foreign bank, UBS Group AG (UBS - Free Report) , has said that it will adjust its accrual for the 2022 ordinary dividend from 51 cents per share to 55 cents, marking an increase of 10% from the previous year. UBS’ board of directors intends to propose the dividend for approval at the 2023 annual general meeting.
Earlier this year, HSBC had said that buybacks would be unlikely in 2022. It also confirmed that the bank would begin to return excess capital to shareholders over what was required to execute its strategy in future years.
HSBC’s $2-billion repurchase program (announced in October 2021) concluded in April 2022, whereas its $1-billion share repurchase plan (announced during 2021 results) concluded in July 2022.
At an event, Stevenson stated, “Fundamentally, our approach on distributions is to view dividends as the primary basis of returning capital to shareholders, and that we use buybacks to soak up surplus capital.”
This February, HSBC approved a second interim dividend of 18 cents per share, making a total of 25 cents per share as dividend for 2021. Moreover, its board of directors approved an interim cash dividend of 9 cents per share for the first half of 2022.
HSBC intends to revert to paying quarterly dividends in 2023, although dividends for the first three quarters are likely to be initially reinstated at a lower level than the historical quarterly dividend of 10 cents per share.
UBS’s board of directors announced a share repurchase program for 2022 of up to $6 billion, valid for two years. As of Sep 9, 2022, UBS repurchased $4.1 billion worth of shares.
Now, UBS expects share repurchases to exceed the $5-billion goal set earlier for 2022.
So far this year, shares of HSBC have gained 4.4%, while UBS has declined 5.6%. The industry has lost 7% over the same period.
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Currently, HSBC sports a Zacks Rank #1 (Strong Buy), whereas UBS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Barclays PLC (BCS - Free Report) continues to reward shareholders with enhanced capital deployments. The bank announced a half-year dividend of 2.25 pence per share. For 2021, it announced a dividend of 6 pence per share, including a 2021 dividend of 4 pence per share, which was paid out on Apr 5, 2022. In 2019, BCS announced a dividend (in aggregate) of 9 pence per share, which marked an improvement from 6.5 pence in 2018, and was thrice the level of 2017 as well as 2016.
Barclays intends to initiate further share buybacks of up to £500 million. Its currently active £1-billion share buyback plan (announced along with 2021 results) is expected to be completed before the end of September 2022.