APRA has written to the banks and insurers, advising them to “seriously consider deferring decisions on the appropriate level of dividends until the outlook is clearer”.
The broker assumes those banks declaring a dividend in April-May will now suspend those dividends, and Commonwealth Bank will do so in August. It may be that a much-reduced dividend is paid, and it may be that dividends due to be paid will be deferred, but given the uncertainty, the broker is not making any such assumptions.
Hold retained for CBA, target falls to $61 from $67.
Target price is $61.00.Current Price is $61.87. Difference: ($0.87) – (brackets indicate current price is over target). If CBA meets the Morgans target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).