Dividends paid by UK banks 'have fallen significantly'

1 March 2013

Dividends paid by banks in the UK have tumbled considerably over the last half-decade or so, new findings have shown.

According to the latest dividend monitor from Capita Registrars, this figure has halved since the beginning of the financial crisis in 2007, the Guardian reports.

It was shown that while more than 20 per cent of dividends paid out from British listed equities were from banks before the credit crunch hit, this reading stood at just 10.6 per cent in 2012.

According to the figures, the total amount of dividends from banks in 2007 stood at £13.3 billion - significantly higher than the £5.8 billion recorded in both 2009 and 2010, while 2012's total came to £8.5 billion.

Justin Cooper, chief executive of Capita Registars, noted this movement has had a particularly negative impact on pension funds.

Ms Cooper explained these funds are dependent on steady income in order to be able to pay both policyholders and pensioners.

By Gary Cooper

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