Bradford & Bingley hints at 2008 dividend cut

LONDON (Reuters) - Mortgage bank Bradford & Bingley (BB.L: Quote, Profile, Research) indicated on Wednesday it could cut its full-year dividend, after moving to a scrip dividend at half-year as part of efforts to shore up its balance sheet.

Asked by analysts if a share dividend and new cover targets indicated a cut to the 2008 dividend, the bank said it had offered "certainty" by clarifying its interim payment and said any alteration would come later.

"The logical flow-through of that from what we've said is this is the year for the rebasing (of the dividend)," Chief Executive Steven Crawshaw said.

The bank earlier announced a 300 million pound rights issue.

(Reporting by Clara Ferreira-Marques)