Originally Posted by
Snoopy
...Now, moving onto the much talked about 'share capital return' to shareholders. I believe that consummate with this, Heartland are proposing to issue some Tier 1 bonds which will count as capital for reserve bank requirement purposes. The proposal then is not to reduce the capital of the bank. The proposal is to lower the share capital, and replace that with bond capital. IMO this makes this whole discussion of HBL having excess capital moot. The true picture is quite the contrary. Heartland freely issue new capital with their acquisitions, and there is no plan on the table to reduce overall capital on the books...