TIDMHSBA
RNS Number : 3230I
HSBC Holdings PLC
31 March 2020
HSBC HOLDINGS PLC
STATEMENT ON 2019 FOURTH INTERIM DIVIDEND AND
2020 ORDINARY SHARE DIVIDENDS
The Board of HSBC Holdings plc ('HSBC') has today received from
the Bank of England through the Prudential Regulation Authority
('PRA') a written request not to pay, in HSBC's case, the fourth
interim dividend in respect of 2019. Similar requests have been
made to other UK incorporated banking groups.
The Board recognises the current and potential material impact
on the global economy as a result of the coronavirus pandemic and
the important role that HSBC has in helping its customers to manage
through the crisis and to have resources to invest when recovery
occurs. HSBC has a strong capital, funding and liquidity position;
however, there are significant uncertainties in assessing the time
period of the pandemic and its impact.
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.
The Board has also decided that until the end of 2020 we will
make no quarterly or interim dividend payments or accruals in
respect of ordinary shares, or undertake any share buy-backs in
respect of ordinary shares.
The Board will review the ordinary share dividend policy and
payments in respect of 2020 once the full impact of the pandemic is
better understood, and economic forecasts for global growth in
future years are clearer. These factors will be considered,
alongside analysis of our own internal financial projections and
modelling.
HSBC is committed to supporting customers in the economies in
which we serve, in particular in our two home markets of Hong Kong
and the UK. In strengthening its ability to support its customers,
the Board believes that HSBC will be better placed to grow its
business for the long term.
HSBC will announce its first quarter 2020 results on Tuesday, 28
April 2020. Group performance has been resilient in the first
quarter in difficult economic conditions and, so far, credit
performance has held up well. However, as a result of the global
impacts of COVID-19, and its impact on interest rates, market
levels and the forward economic outlook, we expect reported
revenues to be impacted in insurance manufacturing, and credit and
funding valuation adjustments in Global Banking & Markets,
alongside higher Expected Credit Losses ('ECL').
For and on behalf of
HSBC Holdings plc
Aileen Taylor
Group Company Secretary and Chief Governance Officer
This announcement includes inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014.
Investor enquiries to:
Mark Phin +852 2822 4908 investorrelations@hsbc.com
Richard O'Connor +44 (0) 20 7991 6590 investorrelations@hsbc.com
Media enquiries to:
Heidi Ashley +44 (0) 20 7992 2045 heidi.ashley@hsbc.com
May Kek +852 2822 4940 may.y.m.kek@hsbc.com.hk
Background notes
-- In 2019, first, second and third interim dividends of US$0.10
per ordinary share each were announced and paid, out of a total of
four dividends totalling US$0.51 per ordinary share announced in
respect of that financial year (including the fourth interim
dividend of US$0.21 which was announced on 18 February 2020 and was
scheduled to be paid on 14 April 2020 prior to the decision to
cancel).
-- HSBC is introducing a range of support measures for customers
around the world. For personal customers, where appropriate, this
may include payment holidays on products such as mortgages,
personal loans and credit cards, waiving some fees and charges, and
facilitating access to physical cash. For business customers, we
will consider loan repayment holidays, extensions to trade and
working capital loans, and fee waivers on certain products. To date
we have already introduced special relief loans for some personal
customers in Hong Kong, allocated GBP8bn to support business
customers in the UK, and partnered with healthcare providers in
mainland China to offer virtual consultation services to ease the
pressure on hospitals and reduce cross-infection. HSBC announced in
February a series of proactive measures to support Hong Kong
businesses and personal customers, providing immediate liquidity
relief of more than HK$30bn for businesses of all sizes, as well as
easing short-term cash-flow pressures and enhancing insurance
protection for personal customers. We are constantly reviewing and
updating our support packages as the pandemic continues to
unfold.
-- HSBC has announced a US$25m COVID-19 charitable fund to
support the international medical response, protect vulnerable
people and ensure food security. Decisions will be made locally, in
response to local need, but we have already earmarked and donated
US$1.75m to relief efforts in mainland China, Hong Kong and India,
GBP1m to the National Emergencies Trust and the British Red Cross
in the UK and US$1m to both the International Federation of Red
Cross and Red Crescent Societies and the World Health
Organisation's COVID-19 Solidarity Campaign.Through long-standing
philanthropic partnerships in Hong Kong, we are identifying ways to
address the most pressing needs of vulnerable groups and support
the eventual recovery.
Notes to editors:
1. The Board of Directors of HSBC Holdings plc as at the date of
this announcement comprises:
Mark Tucker*, Noel Quinn, Kathleen Casey , Laura Cha , Henri de
Castries , Irene Lee , José Antonio Meade Kuribreña , Heidi Miller
, David Nish , Ewen Stevenson, Jackson Tai and Pauline van der Meer
Mohr .
* Non-executive Group Chairman
Independent non-executive Director
2. HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is
headquartered in London. HSBC serves customers worldwide from
offices in 64 countries and territories in our geographical
regions: Europe, Asia, North America, Latin America, and Middle
East and North Africa. With assets of US$2,715bn at 31 December
2019, HSBC is one of the world's largest banking and financial
services organisations.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This communication contains both historical and forward-looking
statements. All statements other than statements of historical fact
are, or may be deemed to be, forward-looking statements.
Forward-looking statements may be identified by the use of terms
such as 'may,' 'intends,' 'plan,' 'will,' 'should,' 'potential,'
'reasonably possible' or 'anticipates' or the negative thereof or
similar expressions, or by discussions of strategy. These
forward-looking statements include statements relating to the
impact of the COVID-19 outbreak on the global markets generally and
on HSBC Holdings plc and its subsidiaries (together, the 'HSBC
Group') in particular. HSBC Holdings plc has based the
forward-looking statements on current expectations and projections
about future events. These forward-looking statements are subject
to risks, uncertainties and assumptions about us, as described
under 'Cautionary statement regarding forward-looking statements'
contained in the HSBC Holdings plc Annual Report on Form 20-F for
the year ended 31 December 2019, filed with the SEC on 19 February
2020 (the '2019 Form 20-F'), and in other reports on Form 6-K
furnished to or filed with the SEC subsequent to the 2019 Form 20-F
('Subsequent Form 6-Ks'). HSBC Holdings plc undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. In light of these risks, uncertainties and
assumptions, the forward-looking events discussed herein might not
occur. Investors are cautioned not to place undue reliance on any
forward-looking statements, which speak only as of their dates.
Additional information, including information on factors which may
affect the HSBC Group's business, is contained in the 2019 Form
20-F and Subsequent Form 6-Ks.
ends/all
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END
UPDEAFDFDSAEEAA
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