Bendigo Bank announced that they will keep its dividend steady at 34 cents per share, but a rise in bad and doubtful debts has pressured the stock 4% lower at the open of trade.
The bank posted a net profit of $209 million , up 0.1% from the previous period, and cash earnings were up 0.4% to $224.7 million. These results were pretty much inline with expectations.
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However, after the bank reported bad and doubtful debts increased by $16.3 million to $39.8 million, the share price broke down through the recent support level at $12.25.
We believe that increased bad debts and loan provisions may be a recurring theme in the banking sector and limit share price appreciation across the big four banks.
