HSBC faces dividend questions

LONDON/HONG KONG: Prospects for higher dividends at HSBC dimmed on Tuesday after Europe´s biggest bank reported a 14 percent drop in quarterly profit and flat capital reserves.  While the drop in first quarter profit was less than expected, HSBC´s key capital ratio was unchanged from the end of 2015 at 11.9 percent against analyst forecasts for 12.1 percent.

That shows the challenge the bank faces to build capital buffers large enough to grow its 8 percent dividend - something management is committed to.

The payout is already the highest among major European lenders, according to Thomson Reuters data.