Threadneedle Street stopped payouts to investors as Covid struck. Now is not yet the time to reinstate them
Vaccines are on the way and economic Armageddon will be avoided (probably). So, since their capital buffers look strong, is it now time to allow banks to pay dividends again?
Dividend distributions were, in effect, suspended by the Bank of England in March when Covid descended on the economy. The vital priority was to keep credit flowing to households and businesses, which meant keeping capital within the financial system.
Capital earmarked for dividends won’t evaporate. If provisions are adequate, shareholders will get their cash eventually