Suncorp released its results this morning which included a 21% cut to the dividend:
Suncorp Group Limited (Suncorp) today reported net profit after tax (NPAT) of $530 million (HY15: $631 million) for the six months to 31 December 2015. Profit after tax from business lines was $544 million (HY15: $681 million). Chairman Ziggy Switkowski said Suncorp has declared an interim dividend of 30 cents per share fullyfranked (HY15: 38 cents) representing a payout of 69% of cash earnings. “The interim dividend reflects positive earnings contribution from across the Group’s diversified insurance and banking businesses. The half year net profit after tax of $530 million demonstrates the benefits of a financial services conglomerate with the Banking and Life operations delivering improved underlying profits at a time when General Insurance earnings have been impacted by external headwinds and operational issues,” Dr Switkowski said.
Hmm, wonder what they are? Shares were hammered on the open but rebounded to flat. The chart remains dire:
More broadly the banks are trying and failing to rally with CBA down -1.2%, WBC and NAB down -0.4%, ANZ flat, BOQ down -1.7% and BEN up 1.3%:
The yield trade is busted, net interests margins are cooked and bad loans are coming.