Australia's Fat Bank Payouts May Be Coming to an End
- Lenders may need $14 billion in new capital, analysts say
- Goldman sees `gradual decline' in 78% dividend payout ratio
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Some of the world’s fattest bank dividends are at risk as Australia’s four dominant banks, which together raised a record amount of equity capital last year, come under pressure to add more amid a potential rise in bad debts.
Commonwealth Bank of Australia, National Australia Bank Ltd., Australia & New Zealand Banking Group Ltd. and Westpac Banking Corp.-- the nation’s four biggest lenders -- may need to add to the A$20 billion ($14 billion) they raised last year so that they count among the world’s safest banks, the regulator says. The banks are disputing that notion, saying their beefed-up buffers are sufficient.