FBNH says it has no plans to raise Tier 1 capital (equity) in 2015 following the depressed level of valuations the bank is facing. The bank gave these other reasons for not raising equity.
- low market liquidity
- significant dilution risk for existing shareholders
Based on the above, it has decided to enhance its capital position through
- increased profit retention (Paying lower dividend)
- interim capitalisation of profits
- more efficient balance sheet management
- more conservative loan growth
FBNH says it had a capital adequacy ratio of 16.7% at the end of the 2014.
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