Today I want to look at the ANZ New Zealand banking covenants for September 30th 2013 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 2013, Number 71 issued November 2013"
Page 36, note 28 contains the information on capital adequacy.
The information supplied is as follows:
Common Equity Tier 1 ratio: 10.4% (vs RBNZ minimum of 4.5%)
Total Tier 1 ratio: 10.8% (vs RBNZ minimum of 6.0%)
Total Tier 1 & 2 ratio: 12.4% (vs RBNZ minimum of 8.0%)
Page 37 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 $90,489m (from the balance sheet) I calculate the above ratios as follows (total net loans and advances of broken down under Note 13 'Net Loans & Advances'):
Common Equity Tier 1 ratio: $7,523m/$90,489m = 8.3%
Total Tier 1 ratio: $7,823m/$90,489m = 8.6%
Total Tier 1 & 2 ratio: $8,957m/$90,489m = 9.9%
Those figures are a little different to those on the preceding page! So why the difference?
SNOOPY
PS Tabulated version of above results
|
30/09/2013 (risk adj) |
30/09/2013 (book value) |
RBNZ Required |
Common Equity Tier 1 Ratio |
10.4 |
8.3 |
4.5 |
Total Tier 1 Ratio |
10.8 |
8.6 |
6.0 |
Total Tier 1&2 Ratio |
12.4 |
9.9 |
8.0 |