Ex-div

24 March 2020 By Liam Proud Follow @liamwardproud

Spain’s $39 bln Santander may pause 2020 payouts, freeing up capital to support lending amid the pandemic. A more radical move would be for banks to all cut 2019 dividends. Investors need cash less than virus-hit firms, and U.S. and European share prices already factor in a hit.

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Spain's Banco Santander on March 23 said it will “review” its dividends to be paid from 2020 earnings “in order to direct resources to support people and businesses in need” amid the coronavirus.

Any payouts will be made in one go in May 2021, in contrast with the usual policy of paying a partial dividend in November of the relevant year.

The lender didn’t mention any changes to its yet-to-be-paid second dividend from 2019 earnings, which is due to be made in May 2020.

Santander shares were up 4% to 2.20 euros at 0845 GMT on March 24, compared with a 4.7% rise for the Euro STOXX Banks index and a 3.1% rise for Spain’s IBEX index.

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