ANZ has announced a ~$22 billion reduction in its advanced internal ratings based risk weighted assets, as a result of the approval of previously advised model reviews of mortgage risk weights by the Australian Prudential Regulation Authority and the Reserve Bank of New Zealand.
This update on ANZ's capital position also revealed that the net benefit of these changes will be approximately 30 basis points of level 2 common equity tier 1 by September 30 2024.
In addition, the impact of the Suncorp Bank acquisition is expected to lead to a 105 basis points reduction in level 2 common equity tier 1.
However, this represents an 18 basis points improvement compared to the pro-forma estimate announced in May.
