Australian Housing Dynamics and Affordability
1.
CET1 VOLUME IN EXCESS AT UNQUESTIONABLY STRONG, MANAGEMENT
ACTIONS AND PROFITABILITY PROTECT TIER 2 INVESTORS
BUFFERS AND PROTECTIONS FOR TIER 2 INVESTORS
Management
•
Actions
•
Possible actions that may be considered to
strengthen capital include:
•
•
Reducing dividend payout
DRP discount and underwrite
New share issuance
Expense management
Restricting RWA growth
CCB
Restrictions
Regulatory restrictions on ordinary share
dividends, discretionary bonuses and AT1
distribution payments if CCB buffer is
breached
Hierarchy
Respected
Mandatory conversion to equity or write-
off of AT1 securities if CET1 ratio falls to
5.125% of RWA or at the point of non-
viability (determined by APRA)
ANZ'S BALANCE SHEET AND EARNINGS BUFFERS
Potential loss absorption
Future Earnings¹
AUD65b
CET1
AUD55b
AT1
T2
30 September 2019
Future earnings are not forecast. Cash Profit before provisions and tax for the 12 months to 30 September 2019 was AUD10.0b. Represents an additional potential amount available for
loss absorption.
ANZ
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