You forgot Westpac also invested in Z1P a few years ago. You'll find that these transactions were done before the RBA dumped the cash rate to 0.25 per cent, compressing the margins across all loan books for banks. This was also before they've had to pay massive remediation damages and also before they've had to hire droves of new AML/CTF compliance staff following the royal commission. This was also before COVID-19 when unemployment was fine, most people could afford their home repayments and there were no signs of significant housing price deterioration.
Trust me, banks have much bigger fish to fry. How could they justify to the regulators in the current environment when all their capital ratios are under pressure that they decide to buy into BNPL? How do you explain to shareholders that you materially decrease dividends (banks are dividend stocks) or cancel them altogether (e.g. Westpac) while making discretionary capital intensive purchases into BNPL?
Doesn't stack up mate, very unlikely that this could happen until interest rates start rising, which are expected in early 2023. CBA is the only exception really, since they are extremely well capitalized due to their recent divestments.
APT Price at posting:
$91.26 Sentiment: Hold Disclosure: Held
