24hoursworld

PacWest Bank shares strengthen after a reduction in its dividend

PacWest Bank shares strengthen after a reduction in its dividend

The Los Angeles-based bank declared a quarterly dividend of $0.01 per share and said business “remains strong.” Its shares rise almost 100% in two days.

The actions of Pac West Bank are up 20.05% on Monday, after the company slashed its dividend and said the business “remains fundamentally sound.”

The Los Angeles-based bank stated a quarterly dividend of $0.01 per common sharedown from its previous dividend of $0.25 per common share—a 96% decrease.

As reported by the Investing.com website, Paul Taylor, the bank’s president and chief executive officer, commented: “Given the current economic uncertainty, recent volatility in the banking sector and possible changes in regulatory capital requirements, we believe that the dividend reduction is a prudent step to accelerate our plans to raise capital up to a CET1 of more than 10%”.

And he assured that the company’s business remains fundamentally sound, so they will continue with the strategy of focusing on their relationship-based community banking model.

Today’s rise followed Friday’s, when the stock rose 82%. Even so, at the closing price on Friday, the shares accumulated losses of 75% so far this year.

The news has also benefited other regional banks such as Western Alliance Bancorporation (+7.8%) and Zions Bancorporation (+3.8%).

This comes after the entire regional banking sector was affected by fears of contagion from a banking crisis following the collapse of Silicon Valley Bank (SVB), Signature Bank and First Republic Bank earlier this year.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts

Oil supply falls and drives future prices

Oil supply falls and drives future prices

The futures of Petroleum They are benefiting from supply problems or fears of shortages around the world, causing their price to rise for three months.