Bendigo and Adelaide Bank is asking its employees to take 10 days in unpaid leave to reduce costs and prevent staff cuts.
The Bendigo Advertiser reported yesterday that more than 5000 staff had received an email asking them to consider the measure.
The bank gave workers until the end of this month to decide.
"The economy is so flat," said Bendigo Bank spokesman Owen Davies. "We’re still getting our share of lending but it’s just flattened out."
The bank has a network of 430 branches nationwide, with a concentration in Victoria and Queensland.
New CEO, Mike Hirst was appointed chief executive last week, replacing Rob Hunt, who oversaw the bank’s expansion.
He is obviously looking to contain costs with lending going flat.
But a problem is the $615 million in loans to thousands of investors in the collapsed Great Southern managed investment scheme business.
Many of these investors face the prospect of the businesses they had invested in, such as trees, grapes, almonds, etc collapsing and having no value.
That would leave the investors with loans and no income and a possible tax bill as well.
Bendigo says it will work with each of the Great Southern investors, but faces the possibility that some stretched investors will default on their loans, forcing the bank to start writing them off.
Bendigo is already struggling with higher impaired housing and other loans, especially non-performing debts in its community banks.
Bendigo shares jumped more than 3%, or 22 cents to $7.21.
The bank didn’t make a statement to the ASX about the hours request, preferring to leave it to individual reporting and the story in the local paper.
Medium sized IT company Data3 says it expects to report annual net profit growth of about 8% for 2009, despite difficult conditions in the second half of the financial year.
The company said yesterday that total revenue for the 2008-09 financial year was expected to be approximately $530 million, up from $363.7 million in the 2008 financial year.
Earnings before interest and tax (EBIT) for the June 30 year are estimated to be around $13.2 million, up 9% on $12.1 million in the 2008 year.
The company says it intends to maintain its established dividend payment practice.
Managing director John Grant said Data3’s second half performance had exceeded earlier guidance.
"At the half year, we expected a more difficult second half and advised that our objective was to at least equal the earnings result of the previous year," Mr Grant said in a statement to the ASX.
"We are delighted that, while conditions did deteriorate, we’ve managed a particularly strong finish to the year.
"The auditors still have to complete their review but we anticipate our full year profit after tax will be up by around eight per cent on the previous corresponding period."
Full year results will be announced on August 24.
And toll road group, Transurban says its majority-owned operator of Sydney’s Eastern Distributor has completed the refinancing of $515 million in debt.
Transurban holds a 75.1% of Airport Motorway Trust, part of the Eastern Distributor operator, Airport Motorway Ltd.
It said the trust had secured a new debt facility consisting of a three-year tranche (accounting for 38% of total facility), a five year tranche (50%) and a seven year tranche (12%).
The facility was provided by ANZ Banking Group, Bank of Tokyo Mitsubishi UFJ, Calyon Australia, Commonwealth Bank, Mizuho Corporate Bank Sydney and Westpac.
Transurban chief financial officer Tom Honan said the lending margins on the facility were in line with those achieved on a recently established facility for its M2 toll road, and are consistent with current market standards for similar assets.
"We are very pleased to have introduced a seven year tranche into this refinancing and to have the majority of the debt maturing in the five and seven year tranches, which helps to mitigate future refinancing risk," Mr Honan said.
Commonwealth Bank of Australia yesterday announced that the directors have decided to apply a 1.5% discount on the Dividend Reinvestment Plan ("DRP") for the final dividend payment for the period ending 30 June 2009.
"The Group will shortly write to all eligible shareholders to ensure they have the opportunity to participate in the DRP.
Shareholders can also contact Link Market Services on 1800 022 440 to change their participation in the DRP.
"The other terms of the DRP remain unchanged.”
The 2009 profit is due to be announced early next month.
CBA shares rose 52 cents to $38.20.
