Bank of New Zealand is paying its Australian parent, National Bank of Australia, a $945 million dividend and the parent is giving $600m of that back to it as additional equity.

BNZ reported a $1.03 billion net profit for the year ended September, up from $937m the previous year.

A similar injection of capital happened last year as well when BNZ paid $1.405b in dividends to its parent which gave it $300m of equity back.

BNZ's latest disclosure statement shows total capital stood at $8.76b at September 30 with $6.81b of that being common equity giving it a common equity ratio of 10.56 per cent, well above the statutory minimum of 4.5 per cent.


Its total capital ratio was 13.59 per cent compared with the statutory minimum of 8 per cent and its buffer ratio was 5.59 per cent compared with the 2.5 per cent statutory minimum.