Polar's Brind: Banks no longer in 'suicidal pursuit' of new business

Polar Capital Global Financials trust manager Nick Brind is backing smaller banks to outperform, and predicts a significant boost to financial sector dividends this year.

Brind (pictured) said lower levels of bank lending and a more conservative banking culture are helping to fuel an environment in which dividends could rise rapidly, as the sector emerges from one of its most challenging periods since the recession. He said: "There has been very little loan growth so there is more to pay out and [the banks] have to pass that back. Banks are retrospectively changing the way they charge customers, so they are no longer in the suicidal pursuit of new business." Brind added the potential dividends could be significant, highlighting the payout plans of some...