Catching up sharetrader - had lots on this last week
Yes I agree W69 - a lot of things look good in a spreadsheet until reality throws a curve ball.
Thankfully thats where the RBNZ and RBA come in with capital adequacy requirements which create some natural constraints around returns on equity. These mandated requirements have been recently lifted though there is a phased transition to reach them. HGH quite a long way ahead of where they need to be at this point in time but have further to go before they are satisfied and with whatever level of buffer HGH believe necessary. The toolkit available to meet them include: the DRP (which nets around 20m pa), grow npat while retaining payout % (resulting in increase retained earnings), lower dividend yield particularly if earnings growth does not eventuate, or raise capital (and various permutations from there).
while I'm comfortable w/ HGH's trajectory it always amazes me this never gets raised on this forum - such a critical driver yet discussion blathers on about milk prices or what not.
the deposit takers insurance scheme currently under leglisation another thing I dont think I've seen mentioned on this board before