Bank share buybacks may still be feasible

The amount of flexibility that banks have to continue with share buybacks and capital returns is a question dividing analysts in light of new rules published by APRA, the bank regulator, on hybrid capital. Credit Suisse First Boston said share buybacks were less likely due to new limits on hybrid capital. Citigroup Investment Research said the way was open for banks with significant amounts of excess capital to return it to shareholders via buybacks, as they'll have plenty of time to rebalance their weightings later on.

Advertisement