ANZ announces AUS$3bn capital raising to meet regulator demands
ANZ has announced a AUD 3bn ($2.1bn) capital raising plan in response to the Australian Prudential Regulation Authority's (APRA) requirement that major banks set aside billions of dollars more to protect themselves against potential losses on home loans. However, analysts have warned that shareholders may have to be tapped for billions of dollars more over the next two years. The bank had also revealed that over the nine months to 30th June it recorded a pre-tax profit of AUD 5.4bn ($3.96bn), up 4.3% YoY, but below estimates by c. 8%, due to bad debts rising by 13% to $877m, along with higher than expected provision charges.
ANZ Banking Group is raising $3 billion from shareholders to boost its capital levels in response to rules requiring banks to be more resilient to financial shocks.

As revealed by The Australian Financial Review's Street Talk column, the bank on Thursday unveiled an institutional share placement to raise $2.5 billion and a $500 million share purchase plan offer for retail investors.

Australia and New Zealand Banking Group has announced an institutional share placement to raise $2.5 billion and and a $500 million share purchase plan offer for retail investors. Credit: Glenn Hunt

ANZ shares were placed in a trading halt as it became the latest bank to take action in response to tighter rules from the Australian Prudential Regulation Authority on capital, which provides a protective buffer against loan losses.

The institutional component of the raising would have an offer price of up to $30.95, a discount of 5 per cent to ANZ's closing price on Wednesday. Retail shareholders will be able to buy up to $15,000 in ANZ shares through a share purchase plan.