Via Ian Rogers at Banking Day:
A haircut for Australian bank profits – but the collapse of bank profitability in New Zealand.
That’s the take of Andrew Lyons, Ashley Dalziell and Desmond Tsao in a commentary from Goldman Sachs Australia yesterday on the Reserve Bank of NZ’s capital proposals.
Lyons and co estimated NZ banks’ average ROE of 15 per cent in FY18 “would fall by 5 per cent to 9 per cent assuming the needed NZ$19 billion increase in Tier 1 capital was entirely funded by ordinary equity.
