Recovery on the Horizon for Global Bank Dividends
After a tumultuous year in banking dividends, will the global banking sector take back its place as the number one aggregate dividend payer in 2021? We forecast that this will be the case with over USD 300 billion in payouts for the year.
While regulatory and economic pressure still exist for the sector and remain the largest factors in downside risk to our dividend forecasts, the banking sector has performed well with many banks exceeding their regulatory capital requirements and reaping the benefits of volatile markets in their investment banking segments.
In this report, we delve into the banking sector, the positive and negative risks to dividends, and broad changes to dividend policies seen in some regions.
This whitepaper explores:
- The largest sources of income for the banks
- Excess capital and what the banks will do with it
- Regulatory risk and banks’ ability to pay dividends
- Changes in dividend policy