Bendigo seeks fresh equity after profit plunge

MELBOURNE - Bendigo and Adelaide Bank is seeking to raise A$300 million ($374 million) in fresh equity after posting a 57.7 per cent plunge in 2008-09 net profit.

Bendigo yesterday reported net profit of A$83.8 million, and a final dividend of 15c a share, fully franked, down from 37c.

Bendigo said it would seek A$173 million from retail and institutional shareholders in a rights issue, and place another A$127 million of ordinary shares with selected sophisticated and institutional investors.

The A$300 million in new equity sought would lift its tier 1 capital ratio to 8.63 per cent on a pro forma basis, and increase total capital to 12.11 per cent. Bendigo recorded full-year net profit of A$83.8 million, down 57.7 per cent on last year's net profit of A$189.1 million.

The result is lower than its earlier guidance of A$145.1 million after a profit warning in April because of higher funding costs.

- AAP