Feb 28, 2017
Barclays seeks to allay pension fears on dividends
Barclays' finance director has sought to allay analysts' fears that a likely £1.25bn contribution to its main pension scheme later this year could delay a potential rebuilding of the bank's shrunken dividend. Investors have been concerned that the pension hit could impede Barclays from restoring its dividend back towards the level of two years ago before the bank cut its annual payout to shareholders in half to conserve capital. "These have been part of our capital plans since then. These pension contributions do not affect our confidence in reaching our end state target in good time. We have accreted over 100 basis points of capital every year for the last three years." The bank said that under the terms of its previous review, contributions to its pension fund were due to increase from £300m last year to £740m this year. Barclays common equity tier one ratio - a key benchmark of financial strength - increased last year from 11.4 per cent to 12.4 per cent.
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