In spite of its record-breaking ~$5 billion raising of capital earlier this year, the bank intends to pay a final dividend of 99 cents per share. Combined with its interim dividend of 99 cents, the shares trade on a dividend yield of around 6.3% fully franked. The bank has a flourishing local business though, over the past two decades, the share price has been depressed by some underperforming assets and questionable managerial decisions. However, the bank has been able to achieve solid growth over this period, but there are certainly many things that it can do to improve its future profitability. Led by CEO Andrew Thorburn, the bank has taken bold initiatives to divest its US bank, Great Western Bancorp; and plans to float its troubled UK bank, Clydesdale in the markets later this year. If this is successful, the bank will be able to get back to focus on its most profitable businesses in Australia and New Zealand.
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