APRA dumps dividend restrictions

Full article here (behind paywall)

cheers
Oracle

 

So good to have proactive regulators. I think we can be thankful to APRA and RBA that Australia weather huge storms fairly easily. GFC, COVID etc.

Their ability to step in when needed and step out when not, is commendable. No wonder APRA is consistently invited to EU and Canada to “train” locals.

 

While they can doesn't mean they will.

If it happens OK but I'll be cautious.

Increase in underlying earnings anyone?

 

CBA already has quite a bit of excess capital from holding the last dividend at 50%. Add in more upside and capital releases from asset sales (BoComm, CMLA, Aussie) and there should be scope for divs to go back to pre-covid levels.

The other banks are struggling a little bit for oxygen, but between them their digital ventures are likely to attract a bit more attention too.

They just won't be valued the same way as the likes of APT, until the banks are ready to divest them.

The kicker will be provision for bad debts releases over the next few years. A couple of billion extra was taken up by each of the banks this year that has proven to be not required so far.