UPDATE 2-Old National Q1 profit dives 51 pct, slashes dividend

lunes 27 de abril de 2009 21:09 CEST

* Q1 EPS $0.08 vs $0.29 last year

* Slashes dividend by 70 pct

* Cuts 2009 net interest margin outlook

* Q1 loan loss provision falls 21 pct to $17.3 mln

* Shares fall as much as 9 pct

By Anurag Kotoky

BANGALORE, April 27 (Reuters) - Old National Bancorp ONB.N said first-quarter earnings halved from a year ago, hurt by a 9 percent rise in non-interest expenses, and it slashed its quarterly dividend by 70 percent to retain capital.

For the year, the company sees net interest margin of 3.65 percent to 3.80 percent, down from its previous outlook of 3.85 percent to 3.95 percent, a company official said in a conference call with analysts.

Net interest margin is the difference between what the bank earns on loans and pays on deposits.   Continuación...