Source: Zhitong Finance Author: Yu Jing
Regional banks$PacWest Bancorp (PACW.US)$Quarterly dividends were cut sharply, citing turmoil in the US banking sector, even though the bank said its business was “generally sound.”
Westpac Bank's board of directors announced that it will pay a quarterly cash dividend of 1 cent per common share. According to the data, the bank previously paid a dividend of 25 cents per share.
CEO Paul Taylor said in a statement, “Given the current economic uncertainty, recent fluctuations in the banking industry, and potential changes in regulatory capital requirements, we believe that reducing dividends is a prudent measure to speed up our capital accumulation plan.”
“Our business is still fundamentally healthy, and we will continue to implement our strategy and focus on a relationship-based community banking model,” he said.
On Friday, Westpac United Bank's stock price soared 96% after the Zhitong Finance App reported that the company was weighing strategic options, including a sale. The company later confirmed the news in a statement saying discussions with investors were ongoing.
Fitch placed the bank's rating on a negative watch list, saying the move was “influenced by potential transactions and uncertainty about the bank's strategic direction.”
When announcing earnings last month, the bank said that deposits had stabilized after a wave of crowding in March, which raised concerns about its health and forced it to increase its liquidity.
According to the statement, the cash dividend will be paid on May 31 to shareholders registered at the end of business on May 15.
edit/lambor