By Gareth Vaughan
New Zealand's big four Australian owned banks have almost trebled annual dividends.
The four - ANZ NZ, ASB, BNZ and Westpac NZ - paid dividends totaling a combined $2.561 billion for their 2014 financial years, up from $920 million last year.
The increases came against the backdrop of an expectation their Australian parents would be required to hold more regulatory capital, which appears set for confirmation following the release of the final report by the Australian Government's Financial System Inquiry.
Leading the way was ANZ NZ with a net dividend of $1.366 billion, a record high that was up from $720 million last year. The National Australia Bank (NAB) owned BNZ paid $420 million, up from $110 million, the Commonwealth Bank of Australia (CBA) owned ASB paid $400 million, up from $90 million, and Westpac NZ paid $375 million versus no dividend last year.
The dividends from the four were equivalent to 59.4% of their combined annual net profit after tax of $4.308 billion.
However, in comparison to their sharemarket listed parents, renowned as generous dividend payers, only ANZ NZ had a higher dividend payout ratio as a percentage of cash profit after tax. ANZ NZ's was 81% versus the the Australia and New Zealand Banking Group's 67.4%. ASB's was 51.5% versus CBA's 75%, BNZ's was 52% versus NAB's 90.1%, and Westpac NZ's was 43.4% versus the Westpac Banking Corporation's 74.2%.
ANZ NZ's annual dividends actually reached $2.335 billion, but it issued $969 million of redeemable preference shares to its parent during the year, effectively reducing the dividend to $1.366 billion. And as previously reported by interest.co.nz, in another form of capital return Westpac NZ repurchased $900 million worth of its own shares during its September financial year.
The trend of rising dividends looks set to continue into the banks' new financial years. ASB, which has a June 30 balance date compared to the September 30 balance date of the other three banks, paid a $440 million dividend in the September quarter versus just $20 million in the same period last year.
The latest disclosures from the big four banks show they all have regulatory capital ratios comfortably above the Reserve Bank mandated minimums.
This story was first published in our email for paying subscribers early on Tuesday morning. See here for more details and how to subscribe.
3 Comments
These Aussie banks can use all their dividends and invest in the heaviest element mining, known to man. It is an Aussie trait we have to invest in, after ALL.,
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Heaviest Element yet Known to Science: (Gv)
Lawrence Livermore Laboratories has discovered the heaviest element yet known to science. The new element, Governmentium (Gv), has one neutron, 25 assistant neutrons, 88 deputy neutrons, and 198 assistant deputy neutrons, giving it an atomic mass of 312.
These 312 particles are held together by forces called morons, which are surrounded by vast quantities of lepton-like particles called peons.
Since Governmentium has no electrons, it is inert; however, it can be detected, because it impedes every reaction with which it comes into contact. A tiny amount of Governmentium can cause a reaction that would normally take less than a second, to take from 4 days to 4 years to complete.
Governmentium has a normal half-life of 2- 6 years. It does not decay, but instead undergoes a reorganization in which a portion of the assistant neutrons and deputy neutrons exchange places.
In fact, Governmentium's mass will actually increase over time, since each reorganization will cause more morons to become neutrons, forming isodopes.
This characteristic of morons promotion leads some scientists to believe that Governmentium is formed whenever morons reach a critical concentration. This hypothetical quantity is referred to as critical morass.
When catalyzed with money, Governmentium becomes Administratium, an element that radiates just as much energy as Governmentium since it has half as many peons but twice as many morons.
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The last Friday before Christma, we really need to inject a little humour into our lives. Because....Banking and Govt are leeches on mans productivity. And getting more like blood suckers everyday. Christmas is not all about Houses and Investment in trivial presents., to keep the parasites in play, truth be told. But it is the time, when the businesses and banks rub their hands and are hopefully in the black to pay the bills on the vast overheads we have built into our over commercialised lives. First the funnies, then the reality. We are forever in their debt.
Plus taxes, naturally.
Have A Merry Christmas. Keep spending.
Santa.
Alter Ego,
Wow, Nice one - "you been reading my mail,"
Maybe Santa could fill his Christmas crackers with all the world's Govermentium, and when he's driving his Reiindeer across the world on Christmas Eve , he could accidentally drop his Governmentium-filled crackers off in Space, making sure they are all set on demolition timers.
What a Merry Happy Christmas for the planet.
We could then truly look forward to Peace on Earth and Good Will to All Man/Womenkind.
At least until the human elements of power and greed begin to build more geopolitical , Govermentium formations of greed and power.
Maybe these toxic formations would be recognised more easily the next time. Sigh
Thanks Louienz....I have a hacking .......cough...cough...
No really, just a bit of junk mail that turned up today, but did seem apt.
I hate these gougers.
They are the overheads I dislike most along with bankers, who have turned this world up side down, with their greed. Work, is a four letter word to the charlatans.
On another subject, I hate Apple, I learned today. Fuitcakes one and all. Steve Jobs, no not anymore.................................slave jobs.
Maybe we should junk all Apple products too, or at least get a better deal for the workers who slave over long hours producing crap for tax dodgers and profitering rabid mongrels to profit from their labours. Plus sell to unsuspecting whizzz kids to keep up with the trendy. Wannabees everyone.
Overpriced and over exploitive, a bad combination, when the profits are billions, but who suffers. I ask you.
What a prospect for Christmas, Jesus would be so proud how his Birthday has been so exploited, so religiously.
Maybe then Santa would be able to have a decent rest from his labours too, get back to the real meaning of Christmas. Not the hype it has become today.
Sheesh...
Yours,
a Really Really, Grumpy Santa...
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