Westpac NZ annual profit rises 3%; RBNZ releases it from capital purgatory
The parent bank is also seeking to raise A$2.5 billion in fresh equity to provide a larger buffer of capital above the regulatory minimum.
But the New Zealand subsidiary also delivered good news on the capital front with the Reserve Bank of New Zealand releasing it from a two-year period in purgatory for failing to get nearly half its internal models for calculating capital approved, a failure dating back to 2008 when it was first accredited to use the models.
RBNZ had ordered Westpac New Zealand to hold about $1 billion of additional capital for those two years, a two-percentage-point overlay above its minimum required capital. RBNZ has now removed that impost.
Westpac New Zealand's net profit for the year ended September rose to $964 million from $936 million, boosted by a $10 million write-back of charges against profit for bad debts and the $40 million gain from selling its Paymark stake.
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