Prudential regulators drive NAB capital plans

Ian Rogers
Last week's speech by APRA chief Wayne Byres is one factor that informs the scale and timing of NAB's capital raising of A$5.5 billion, a fully underwritten share placement.

"We don't want to be in a position where we constant have to do DRP underwritings," Craig Drummond, the NAB group's chief financial officer told an investor briefing yesterday.

Drummond cited Basel initiatives from December 2014 and last year's Financial System Inquiry as drivers of the decision.

NAB's CET1 core capital ratio will be around ten per cent, and "peer leading" Drummond said.

He said this capital raising "brings it forward. We get the certainty."