Dividend cap on Singapore banks to weigh down sentiment
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Singapore
ANALYSTS have reset their dividend estimates for Singapore banks in the upcoming second-quarter results, while also projecting for sharp dips in share prices in the near term, after the regulator nudged banks to cap their dividends.
In a move to shore up capital amid the uncertain economic climate, the Monetary Authority of Singapore (MAS) last Wednesday called on local banks to cap their total dividends per share (DPS) for FY2020 at 60 per cent of the amount in the previous financial year. Shareholders should also be offered the option of receiving the dividends to be paid for FY2020 in scrip in lieu of cash.
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