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Highlights
- Top five lenders in Britain will payout £7 billion as dividend this year, up from £3.3 billion last year.
- The big five are all set to record a pre-tax profit of around £33 billion for 2021.
A dividend bonanza is being plotted by top banks as they are all set to record their highest profits since the 2008 global financial crisis and offer bigger payouts to their shareholders. A pre-tax profit of around £33 billion for 2021 is set to be recorded by the top five lenders in Britain, which include HSBC, Lloyds Banking Group, Barclays, Standard Chartered and NatWest.
According to analysts, dividend worth £7 billion will be paid out by the big five banks, which is way more than last year’s dividend payout of £3.3 billion, in addition to share buybacks. The senior bankers are holding talks with the Bank of England regarding the release of cash, which has been held separately for bad loans in around two weeks’ time for their quarterly earnings report.
Amid rising inflationary pressure and employers dishing out record pay increases; the lenders are gaining an advantage with interest rates surging. However, the banks are flourishing, the economy is suffering from supply chain disruptions, soaring energy costs, and the end of the furlough scheme.
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Let’s take a brief look at the top five lenders in the UK.
Lloyds Banking Group PLC (LON: LLOY)
Lloyds Banking Group PLC is one of the largest financial services companies in the UK with more than 25 million customers. Its current market capitalisation stands at £33,268.56 million. It has given a return of 67.32% in 1 year. Its average dividend per share stands at GBP 0.02 and its 5-year average dividend yield is 3.8%. The Lloyds Banking Group PLC’s shares were trading at GBX 47.53 as on 11 October 2021.
HSBC Holdings plc (LON: HSBA)
HSBC Holdings plc’s current market capitalisation stands at £85,699.66 million. It has given a return of 37.39% in 1 year. Its average dividend per share stands at GBP 0.17 and its 5-year average dividend yield is 4.5%. The HSBC Holdings plc’s shares were trading GBX 427.80 as on 11 October 2021.
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Barclays PLC (LON: BARC)
Barclays PLC is a multinational bank and has a current market capitalisation of £32,876.59 million. It has given a return of 83.31% in 1 year. Its average dividend per share stands at GBP 0.06 and its 5-year average dividend yield is 2.3%. The Barclays PLC’s shares were trading GBX 197.92 as on 11 October 2021.
Natwest Group PLC (LON: NWG)
Natwest Group PLC is a Scotland-based banking and insurance holding company with a market capitalisation of £25,878.45 million. It has given a return of 102.20% in 1 year. Its average dividend per share stands at GBP 0.09 and its 5-year average dividend yield is 0.9%. The Natwest Group PLC’s shares were trading at GBX 230.60 as on 11 October 2021.
Standard Chartered PLC (LON: STAN)
Standard Chartered PLC is a London-headquartered global banking group with a current market capitalisation of £14,804.40 million. It has given a return of 28.82% in 1 year. Its average dividend per share stands at GBP 0.14 and its 5-year average dividend yield is 1.3%. The Standard Chartered PLC’s shares were trading at GBX 494.90 as on 11 October 2021.
