Kiwibank's capital boost means it's no longer last

The new capital from the $310 million proceeds of selling Kiwi Wealth takes Kiwibank's tier 1 common equity (CET1) ratio to about 11.65% compared with 10.4% at March 31, although it will be providing more precise figures when it reports its annual results later this month, Jurkovich told TMMO.

That means Westpac, with a CET1 ratio of 11.1% at March 31, is now the least well capitalised bank in the country.

Before the new capital was announced, Jurkovich has said his bank had a plan to increase capital without requiring a further contribution from its shareholder, which is ultimately the government.

Under Reserve Bank rules, Kiwibank has seven years from July 1 last year to get its CET1 ratio to at least 14% and no bank is likely to be comfortable sitting at the minimum.