Australia : Bendigo expected to cut FY09 dividend.Byline: babalu03 Regional lender Bendigo and Adelaide Bank The Adelaide Bank (ASX: ADB) is a publicly listed regional bank with its head office in the state of South Australia. The bank was established on 1 January1994 from the Co-operative Building Society of South Australia Limited, which was Australia's largest building society. Ltd is expected to deliver a dividend cut when it posts its 2008/09 results on Monday, less than a week after warning of a fall in annual cash earnings. Analysts say bad debts and revenue pressure will be a feature of Bendigo's result. The bank warned on Tuesday of a $20.2 million increase in provisions for its loans to the failed agricultural investor Great Southern, which would cut its full-year cash earnings by eight cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . Both Citi and Credit Suisse The Credit Suisse Group (SWX:CSGN, NYSE: CS) is a financial services company, headquartered in Zürich, Switzerland. It is the second-largest Swiss bank, behind UBS AG. analysts say dividends per share Dividends per share Dividend paid for the past 12 months divided by the number of common shares outstanding, as reported by a company. The number of shares often is determined by a weighted average of shares outstanding over the reporting term. in 2008/08 will be 44 cents. Citi cut its estimate from 47 cents earlier last week but retained its Hold recommendation on the stock after the earnings downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. . Credit Suisse still expects the stock to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. given it is one of the cheapest in the banking sector, but only if legacy issues from Bendigo's integration with Adelaide Bank are addressed. In 2007/08 Bendigo shareholders pocketed a 65 cent total dividend from a net profit of $189.1 million. The bank's interim 2009 profit fell 16.9 per cent to $60.5 million and the interim dividend was 28 cents a share, 30 per cent franked, unchanged from the previous corresponding period. Austock Securities banking analyst John Buonaccorsi said on Tuesday that Bendigo's earnings downgrade would wipe around $24 million from the bank's full-year after-tax profit that had been expected at around $145.1 million. His estimate falls between Citi's reported 2008/09 profit estimate of $115.7 million and Credit Suisse's $122.5 million. Bendigo also said this week that an extra $14.4 million had been raised in specific provisions at June 30, due primarily to the deterioration in asset values in the commercial property sector. Previously advised cash earnings of 70 to 75 cents per share to June 30 would now be 63 cents per share, Bendigo said. Bendigo said that, excluding these loans, its credit quality is generally sound. However, Citi analysts Craig Williams Craig Williams may refer to:
The analysts said in a client note that 22 per cent of the Great Southern loans were in arrears Adv. 1. in arrears - in debt; "he fell behind with his mortgage payments"; "a month behind in the rent"; "a company that has been run behindhand for years"; "in arrears with their utility bills" behindhand, behind , with levels climbing materially in recent months. Copyright : Euclid Infotech Pvt. Ltd. Provided by Syndigate.info an Albawaba.com company |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion