Banks set to find out if they can hike dividends, repurchase shares
BNN Bloomberg
Canada’s banking regulator is going to provide an update this week that could be music to the ears of investors.
Canada’s banking regulator is going to provide an update this week that could be music to the ears of investors.
The Office of the Superintendent of Financial Institutions (OSFI) confirmed in a media advisory Tuesday that its superintendent will make an announcement about capital distributions for federally regulated financial institutions on Thursday.
OSFI imposed a halt on share buybacks and dividend hikes in March 2020 as it sought to shield federally regulated lenders from the ravages of COVID-19.
As Canada made progress in its fight to contain the pandemic, bank executives were frequently asked about their plans for an eventual lifting of the clampdown, and investors have mused about the potential gusher of dividends and buybacks as banks built up their capital levels.
Indeed, in mid-October, Hamilton Capital Partners said banks could be equipped to raise their dividends as much as 25 per cent.
