Bank preference shares

[HC]

After the budget speech, bank prefs came off in line with the increase in divi tax. In the last week these shares seem to have recovered. Any ideas why?

[HC]

I just got the answer to my question in an email form Nedbank. They intend to increase the divi from 7,5% of prime to 8,33% to offset the increase in divi tax. Hopefully the other banks will follow suit.

[#3]

How noble of them to word it as a generous donation at the benefit of their shareholders. Sounds like what htey are really doing is adjusting the div payout since they no longer have to pay STC - which is what htey are supposed to do anyway.

[SimonPB]

that only off sets a 10% increase in DWT, but increase was 15% so instead of 75% of prime you now get 70.8% ..