Bendigo & Adelaide Bank Ltd
(ASX:BEN) has cut its full year earnings forecast after taking provisions for its exposure to the collapsed agribusiness group Great Southern, and deteriorating asset values in the commercial property sector.
The bank says it now expects earnings per share for the full year to June 30, of approximately 63 cents, down from previous guidance of between 70 and 75 cents a share.
The company says it will take $20.2 million in specific and collective provisions relating to loans which form the Great Southern portfolio.
Bendigo & Adelaide Bank will also take an additional $14.4 million in provisions primarily due to the deterioration in asset values in the commercial property sector.
The bank says it does not expect any goodwill impairment in its full year results, to be provided on August 10.
Bendigo & Adelaide Bank’s 2008 net profit was its best in five years.
