Investors in the leading banks have endured a hair-raising year. At times, Lloyds, NatWest, Barclays and HSBC have seen their share prices dwindle to under half what they were 12 months ago. But are they now turning a corner?
Banks were this month given the green light to restart paying dividends – a huge relief to shareholders who rely on their holdings for an income. In March the industry regulator, the Prudential Regulation Authority, had asked banks to freeze dividends to private investors and pension funds. Instead, banks were told to use the payments to build up a cash pile as a buffer against potential loan losses.