Income investors have greater reason to mourn the new reality of investing in the big four banks – new figures reveal that almost $10 billion has been sliced off payouts in the latest reporting season, including the benefit of lost franking credits.

Westpac's dividend deferral on Monday underscored the fact that bank shareholders will not see a return to the $24 billion in annual payouts any time soon. Just like ANZ, the bank believed it was prudent not to make a distribution during the COVID-19 pandemic.