Major Australian banks’ capital ratios have weathered the pandemic just fine, but investors shouldn’t expect any more new buyback announcements, according to Morgan Stanley’s sell-side analysts.
They reckon the big four went from about 10.9 per cent in pre-COVID average capital ratio to 11.1 per cent, after accounting for buybacks, dividends and asset sales during the time.
By Morgan Stanley’s numbers, the big four’s excess capital is only $1.6 billion above an 11 per cent ratio or $6.2 billion above 10.75 per cent despite their strong CET1 ratios. They based this estimate off APRA’s new framework slated to go live in January 2023 plus NAB and Westpac’s new recently confirmed target capital ratios.Advertisement
The note said banks’ dividend payout ratios was generally lower than they were pre-COVID, with targets ranging from as low as 60% to as high as 80% .
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Major Australian business group backs RBA's interest rate riseThe Reserve Bank of Australia's decision to lift the cash rate for a third time this year has been backed by the Australian Chamber of Commerce and Industry which says a failure to do so would 'risk embedding high inflation'.
Read more »
Australia's energy transformation is ramping up, but there are major challenges aheadThe Labor government has a plan to increase the share of renewable energy in the grid to 82 per cent by 2030, but many experts and investors say reaching that will not be possible without a major upgrade of the poles and wires that transport that power around the grid.
Read more »
Major flood warning for NSW town with some 'good news' for SydneysidersResidents in the New South Wales town of Singleton have been told to prepare to evacuate ahead of concerns floodwaters could exceed the disaster earlier this year.
Read more »
Major Aussie super fund records worst result since global financial crisisAustralianSuper recorded a 2.73 per cent fall in annual returns, its worst result since the global financial crisis 13 years ago.
Read more »