Beane defends HSBC dividends in spite of falling profits

It was good business to pass profits through the shareholders when this was feasible, HSBC Bank Malta’s chief executive officer Andrew Beane told the Times of Malta.

HSBC Bank Malta will this year be giving its shareholders a dividend pay-out representing 47 per cent of net profits, in spite of the fact that its profits slid by 23 per cent to €38.6 million in the financial year ended December 2018.

The board recommended a final dividend pay-out ratio of 30 per cent of net profit, bringing the full year ratio to 47 per cent.

Asked whether the dividend was aimed at appeasing the main shareholder, the HSBC Group, Mr Beane insisted that the dividend policy was set by the local board with the interests of all the shareholders in mind, depending on how much capital the bank needed to move its business forward.

“It’s good business to pass it through to shareholders,” he said.

HSBC Bank Malta has paid out more than €100 million in dividends over the past five years, reducing the ratio slightly in the second half of this year “because of technical requirements”.