CBA Cash Earnings Down 11.3%, Dividend Chopped 50%
The Commonwealth Bank has slashed final dividend for the 2019-20 financial year by more than 50% in the wake of the impact of COVID-19 pandemic and lockdowns.
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Where Do The Banks Sit In The Switch From Growth To Value?
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News
Has APRA Clarified The Outlook For Banks?
The dividend outlook for banks has weighed heavily on valuations since the onset of the pandemic and the resultant economic slump. Has the prudential regulator, APRA, set minds at rest?
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APRA “Strikes A Balance” On Bank Dividends
APRA has eased restrictions around paying dividends in time for the June 30 and September 30 reporting season but told the banks and insurers they should seek “to retain at least half their earnings” when considering payouts.
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“Flexibility”: APRA Opens Door On Bank Dividends
The chances of banks resuming paying dividends have risen sharply after the key regulator, the Australian Prudential Regulation Authority (APRA) indicated a change of mind.
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Moody’s Finds Silver Lining In Shutdown For Local Banks
Global ratings group has found a silver lining in the recession and lockdowns generated by the COVID-19 pandemic - it has made the Australian financial system and the banks, safer.
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Analyst Views
CBA – Morgans rates the stock as Hold
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".
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CBA – Credit Suisse rates the stock as Neutral
Credit Suisse, again, reduces earnings estimates and allows for a further increase in bad debts for the banks.
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CBA – Citi rates the stock as Buy
Citi does not expect APRA to follow the RBNZ’s lead in suspending bank dividend payments, as too many self-funded retirees rely on that income with the cash rate at 0.25%. The regulator has indeed flagged an opposite capital approach — easing the timing on “unquestionably strong” levels in the face of the crisis.
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CBA – Credit Suisse rates the stock as Upgrade to Neutral from Underperform
Credit Suisse downgrades earnings estimates on the back of the reduction in official cash rates but also taking note of an increase in bad debt provisions derived from economic stress.
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CBA – Macquarie rates the stock as Underperform
The broker has responded to the Commonwealth bank result with a series of charts. It is unclear how the result stacked up against forecasts.
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