Today I want to update the ANZ New Zealand banking covenants for September 30th 2014 quarter (corresponding to the EOFY). ANZ New Zealand includes their wholly owned subsidiary UDC finance.
Once again the document I am referencing is the:
"ANZ bank New Zealand Limited Annual Report and Disclosure Statement for the year ended 30th September 2014, Number 75 issued November 2014"
Page 37, note 26 contains the information on capital adequacy.
The information supplied is as follows:
Common Equity Tier 1 ratio: 10.7% (vs RBNZ minimum of 4.5% + 2.5% buffer)
Total Tier 1 ratio: 11.1% (vs RBNZ minimum of 6.0% + 2.5% buffer)
Total Tier 1 & 2 ratio: 12.3% (vs RBNZ minimum of 8.0% + 2.5% buffer)
Page 38 contains detailed notes on just how the ANZ NZ capital is made up. If you use that information and use it to calculate the above ratios, based on a loan book with net loans and advances of $96,299m (from the balance sheet) I calculate the above ratios as follows (total net loans and advances of broken down under Note 12 'Net Loans & Advances'):
Common Equity Tier 1 ratio: $7,826m/$96,299m = 8.1%
Total Tier 1 ratio: $8,126m/$96,299m = 8.4%
Total Tier 1 & 2 ratio: $9,062m/$96,299m = 9.4%
Those figures are a different to those on the preceding page. That is because the Tier 1 and Tier 2 capital figures have been 'risk adjusted' before they went into my calculation. The risk adjustment is done because the expected capital recovery from loans should they go bad is different among the different classes of loans (corporate, sovereign, bank, retail mortgages and other retail)
SNOOPY
PS Tabulated version of above results
|
30/09/2014 (risk adj) |
30/09/2014 (book value) |
RBNZ Required |
Common Equity Tier 1 Ratio |
10.7 |
8.1 |
4.5+2.5 |
Total Tier 1 Ratio |
11.1 |
8.4 |
6.0+2.5 |
Total Tier 1&2 Ratio |
12.3 |
9.4 |
8.0+2.5 |