Adam Dawes

APRA tells banks to restrict dividends - High dividend yields and expectations of bonus capital returns have been the major factor in the stellar run in bank shares this year. Article from AFR today, indicating major banks to hold 1%-1.5% above 7%, so might mean banks required to hold 8%-8.5% CET1 capital. Given this is where the banks already are not a drama. Shaw Stockbroking assumes a 10c special for WBC in the second half and 20c in 2014, this might make WBC a little more shy in paying a special in 2014 (might), this would lower their 2014 yield from 6.3% to 5.6%.


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