Singapore bank shares sold off after MAS call to cap dividend payouts

Monetary Authority of Singapore urged banks to cap their total dividends per share this year to 60 per cent of last year's amount.
Monetary Authority of Singapore urged banks to cap their total dividends per share this year to 60 per cent of last year's amount.ST PHOTO: KUA CHEE SIONG

SINGAPORE - Investors sold off shares of DBS Group Holdings, Oversea-Chinese Banking Corp (OCBC), and United Overseas Bank (UOB) on Thursday (July 31) after Singapore's central bank asked the lenders to cap dividends this year to ensure they can support businesses and individuals in the face of significant uncertainties ahead.

In what analysts called the regulator's first such pre-emptive move spurred by economic uncertainty following the Covid-19 pandemic, the Monetary Authority of Singapore (MAS) on Wednesday urged banks to cap their total dividends per share this year to 60 per cent of last year's amount.

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