$A appreciation eats into ANZ earnings growth
ANZ predicted yesterday that its earnings per share growth in the year to September 2011 could be cut by 1.2 per cent if the Australian dollar remains at current levels.The bank disclosed the impact this would have in a presentation contained in an investor discussion pack which it released yesterday.ANZ also provided some data on its capital ratios as they apply under the planned overhaul of banking regulations known as Basel III.The bank said that under the present Basel II rules its September 2010 tier-one capital ratio was 8.0 per cent. Under Basel III this would be 9.2 per cent, or 2.2 percentage points clear of the notional required minimum of 7.0 per cent.ANZ will, however, also have to meet the requirement for a counter-cyclical buffer. Under the present plans this could be as high as 2.5 percentage points, but it could be less.The bank noted in its presentation that the "position will remain uncertain until APRA finalises [the] domestic rules".ANZ also highlighted that the planned leverage ratio was "unlikely to be a binding constraint".