FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the
month of April
HSBC Holdings plc
42nd
Floor, 8 Canada Square, London E14 5HQ, England
(Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F).
Form
20-F X Form 40-F
(Indicate
by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934).
Yes
No X
(If
"Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-
).
HSBC HOLDINGS PLC
STATEMENT ON 2019 FOURTH INTERIM DIVIDEND AND
2020 ORDINARY SHARE DIVIDENDS
The Board of HSBC Holdings plc ('HSBC') has today received from the
Bank of England through the Prudential Regulation Authority ('PRA')
a written request not to pay, in HSBC's case, the fourth interim
dividend in respect of 2019. Similar requests have been made to
other UK incorporated banking groups.
The Board recognises the current and potential material impact on
the global economy as a result of the coronavirus pandemic and the
important role that HSBC has in helping its customers to manage
through the crisis and to have resources to invest when recovery
occurs. HSBC has a strong capital, funding and liquidity position;
however, there are significant uncertainties in assessing the time
period of the pandemic and its impact.
The Board has therefore met to discuss the written request from the
PRA and, in response to the request, has cancelled the fourth
interim dividend of US$0.21 per ordinary share, which was scheduled
to be paid on Tuesday, 14 April 2020. The Board regrets the impact
this cancellation will have on our shareholders, including our
retail shareholders in Hong Kong, the UK and
elsewhere.
The Board has also decided that until the end of 2020 we will make
no quarterly or interim dividend payments or accruals in respect of
ordinary shares, or undertake any share buy-backs in respect of
ordinary shares.
The Board will review the ordinary share dividend policy and
payments in respect of 2020 once the full impact of the
pandemic is better understood, and economic forecasts for global
growth in future years are clearer. These factors will be
considered, alongside analysis of our own internal financial
projections and modelling.
HSBC is committed to supporting customers in the economies in which
we serve, in particular in our two home markets of Hong Kong and
the UK. In strengthening its ability to support its customers, the
Board believes that HSBC will be better placed to grow its business
for the long term.
HSBC will announce its first quarter 2020 results on Tuesday,
28 April 2020. Group performance has been resilient in the
first quarter in difficult economic conditions and, so far, credit
performance has held up well. However, as a result of the global
impacts of COVID-19, and its impact on interest rates, market
levels and the forward economic outlook, we expect reported
revenues to be impacted in insurance manufacturing, and credit and
funding valuation adjustments in Global Banking & Markets,
alongside higher Expected Credit Losses ('ECL').
For and on behalf of
HSBC Holdings plc
Aileen Taylor
Group Company Secretary and Chief Governance Officer
This announcement includes inside information as defined in Article
7 of the Market Abuse Regulation No. 596/2014.
Investor enquiries to:
Media enquiries to:
Background notes
●
In
2019, first, second and third interim dividends of US$0.10 per
ordinary share each were announced and paid, out of a total of four
dividends totalling US$0.51 per ordinary share announced in respect
of that financial year (including the fourth interim dividend of
US$0.21 which was announced on 18 February 2020 and was scheduled
to be paid on 14 April 2020 prior to the decision to
cancel).
●
HSBC
is introducing a range of support measures for customers around the
world. For personal customers, where appropriate, this may include
payment holidays on products such as mortgages, personal loans and
credit cards, waiving some fees and charges, and facilitating
access to physical cash. For business customers, we will
consider loan repayment holidays, extensions to trade and working
capital loans, and fee waivers on certain products. To date we have
already introduced special relief loans for some personal customers
in Hong Kong, allocated £8bn to support business customers in
the UK, and partnered with healthcare providers in mainland China
to offer virtual consultation services to ease the pressure on
hospitals and reduce cross-infection. HSBC announced in February a
series of proactive measures to support Hong Kong businesses and
personal customers, providing immediate liquidity relief of more
than HK$30bn for businesses of all sizes, as well as easing
short-term cash-flow pressures and enhancing insurance protection
for personal customers. We are constantly reviewing and updating
our support packages as the pandemic continues to
unfold.
●
HSBC
has announced a US$25m COVID-19 charitable fund to support the
international medical response, protect vulnerable people and
ensure food security. Decisions will be made locally, in response
to local need, but we have already earmarked and donated US$1.75m
to relief efforts in mainland China, Hong Kong and India, £1m
to the National Emergencies Trust and the British Red Cross in the
UK and US$1m to both the International Federation of Red Cross and
Red Crescent Societies and the World Health Organisation's COVID-19
Solidarity Campaign.Through long-standing philanthropic
partnerships in Hong Kong, we are identifying ways to address the
most pressing needs of vulnerable groups and support the eventual
recovery.
Notes to editors:
1. The Board of Directors of HSBC Holdings plc as at the date of
this announcement comprises:
Mark Tucker*, Noel Quinn, Kathleen Casey†,
Laura Cha†,
Henri de Castries†,
Irene Lee†,
José Antonio Meade Kuribreña†,
Heidi Miller†,
David Nish†,
Ewen Stevenson, Jackson Tai† and
Pauline van der Meer Mohr†.
* Non-executive Group Chairman
† Independent
non-executive Director
2. HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is
headquartered in London. HSBC serves customers worldwide from
offices in 64 countries and territories in our geographical
regions: Europe, Asia, North America, Latin America, and Middle
East and North Africa. With assets of US$2,715bn at 31 December
2019, HSBC is one of the world's largest banking and financial
services organisations.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This communication contains both historical and forward-looking
statements. All statements other than statements of historical fact
are, or may be deemed to be, forward-looking statements.
Forward-looking statements may be identified by the use of terms
such as 'may,' 'intends,' 'plan,' 'will,' 'should,' 'potential,'
'reasonably possible' or 'anticipates' or the negative thereof or
similar expressions, or by discussions of strategy. These
forward-looking statements include statements relating to the
impact of the COVID-19 outbreak on the global markets generally and
on HSBC Holdings plc and its subsidiaries (together, the
'HSBC
Group') in particular. HSBC
Holdings plc has based the forward-looking statements on current
expectations and projections about future events. These
forward-looking statements are subject to risks, uncertainties and
assumptions about us, as described under 'Cautionary statement
regarding forward-looking statements' contained in the HSBC
Holdings plc Annual Report on Form 20-F for the year ended 31
December 2019, filed with the SEC on 19 February 2020 (the
'2019 Form
20-F'), and in other reports on
Form 6-K furnished to or filed with the SEC subsequent to the 2019
Form 20-F ('Subsequent Form
6-Ks'). HSBC Holdings plc
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. In light of these risks, uncertainties
and assumptions, the forward-looking events discussed herein might
not occur. Investors are cautioned not to place undue reliance on
any forward-looking statements, which speak only as of their dates.
Additional information, including information on factors which may
affect the HSBC Group's business, is contained in the 2019 Form
20-F and Subsequent Form 6-Ks.
ends/all
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
HSBC
Holdings plc
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By:
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Name:
Aileen Taylor
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Title:
Group Company Secretary and Chief Governance Officer
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Date:
01 April 2020
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