HSBC, Santander Signal Return to Dividends as Profit Beats
- Lower provisions, trading rally have bolstered bank earnings
- But European governments are warning of pandemic’s second wave
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Two of Europe’s largest banks signaled a path back to paying dividends after boosting capital and saying loan losses for the year are likely to be lower than expected.
HSBC Holdings Plc said it would pay a “conservative dividend” for the year if allowed, after Europe’s largest lender reported higher-than-expected earnings for the third quarter. Banco Santander SA rebounded from its worst-ever loss with improved capital and an upbeat profit forecast as it seeks to convince regulators that its balance sheet is strong enough to resume dividend payments.