The S&P/ASX 200 (ASX: XJO) is expected to trade lower today with the Sydney Futures Exchange pointing to a negative open. Right now, the ASX 200 is priced 0.12% from its 52-week high of 7138.4.
Making investment headlines today is Bendigo and Adelaide Bank Ltd (ASX:BEN), Brambles Limited (ASX:BXB) and Phoslock Environmental Technologies Ltd (ASX:PET).
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ASX News Today
1. Bendigo and Adelaide Bank Ltd
Bendigo and Adelaide Bank was formed following the merger of Bendigo Bank and Adelaide Bank in November 2007. The bank operates primarily within the retail banking space and has a network of more than 500 branches and agencies across Australia, predominantly on the East Coast and South Australia.
In Bendigo Bank’s 2020 half-year report the regional bank showed a 5.6% increase in revenue to $834 million and a profit of $146 million, down 28% year over year. On a cash earnings basis, which is popular amongst banks in Australia, profit fell 2% to $215 million. The difference between the figures, Bendigo Bank said, can be attributed to software impairment costs.
“Earnings for the half were impacted by ongoing technology investment, regulatory and compliance costs and staff investment to support mortgage growth,” CEO Marnie Baker said.
“Despite this, we delivered total income of $814.7 million, up 1.4 percent on the prior corresponding period, in a challenging environment comprised of low rates, increasing regulatory pressure, low consumer and business confidence and growing competition.”
Bendigo Bank’s board elected to pay a half-year or interim dividend of 31 cents per share, down from 35 cents per share last year.
The bank also announced it will undertake a $300 million capital raising. Read this Rask Media article for more coverage: “Bendigo Bank HY dividend hits 31c, capital raising underway”
2. Brambles Limited
Brambles is a pooling solutions company specialising in the provision of reusable pallets, crates, containers and associated logistics services through the CHEP and IFCO brands.
This morning, Brambles also released its half year report showing a 7% increase in sales revenue to $US2.4 billion together with a net profit of $US278 million, up 8% in constant currency terms. An interim dividend of 9 US cents or 14.5 Australian cents was declared by the board.
“Despite a range of challenges, we delivered sales and earnings growth across all our segments and materially improved Group cash flow generation in the first half,” Brambles CEO Graham Chipchase said.
“Our operating environment in the first-half was characterised by increasing macroeconomic uncertainty and ongoing political instability, particularly evident in major European markets.”
“In this context, our first half sales performance reflects the resilient nature of our business as we continue to expand with new and existing customers despite price realisation to recover higher costs in most markets.”
3. Phoslock Ltd
Phoslock is a developer of environmental engineering solutions that are designed to treat water in lakes, rivers and reservoirs. The company is headquartered in Sydney but has offices around the world.
In an ASX release this morning, the industrial small-cap provided investors with an update on its Chinese operations and a new contract in Brazil. In China, Phoslock’s team are now back at work and its factory has received restart approval. The company said no treatments in China are planned until late March/April and no delays are expected, so there is no effect on the company’s FY20 sales guidance.
Finally, via a subsidiary, Phoslock received a contract to treat drinking water in Rio de Janeiro. The contract has an estimated value of over $2 million.
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