Bank share price falls could be an opportunity despite dividend pain, say analysts

Strong capital positions

Fund managers remain confident banks' capital buffers will ensure they sail through the coronavirus crisis relatively unscathed, after dividend cancellations rocked share prices on Wednesday.

The UK's largest lender said they would cancel final dividends for 2019, amid pressure from the Prudential Regulation Authority (PRA), as well as agreeing to put no money aside for payouts in 2020 and ruling out share buybacks. The move comes after US banks were forced to cancel share buyback plans. The hit to both stock and fund investors adds up to more than £7.5bn, with the HSBC, Lloyds and Barclays having offered prospective yields of 9%, 10.5% and 9.6% respectively. Major banks agree to scrap dividend payments during crisis The announcement saw the share prices of banks across...