The Australian Prudential Regulation Authority (APRA) has released the Quarterly Authorised Deposit-taking Institution (ADI) Performance and the Quarterly ADI Property Exposure publications for the quarter ending 30 June 2023.
The banking industry remained well capitalised, with profitability contributing to increases in the total capital ratio. Liquidity and funding levels remained well above minimum requirements. Asset quality deteriorated marginally but remained stronger than historic averages.
Housing credit growth moderated over the year to June. The share of new loans with high loan-to-valuation ratios and high debt-to-income ratios continued to decline.
Additionally, APRA has released the second edition of its ADI Centralised Publication (ADICP). This contains entity-level capital and liquidity data to enhance the transparency of the ADI industry and provide relief for smaller ADIs from disclosure obligations.
“Series in this publication may be impacted by data reporting issues. APRA is working with data providers to resolve the issues as soon as possible.”
Key statistics for ADIs1 for the June 2023 quarter were:
June 2022 | June 2023 | Year on Year Change | |
|---|---|---|---|
Net profit after tax (year-end) | $38.1 billion | $41.8 billion | +9.8% |
Total assets | $5,996.6 billion | $6,118.1 billion | +2.0% |
Total capital base | $388.5 billion | $432.4 billion | +11.3% |
Total risk-weighted assets | $2,304.3 billion | $2,198.0 billion | -4.6% |
Total capital ratio | 16.9% | 19.7% | +2.8 percentage points |
Liquidity coverage ratio | 133.0% | 134.0% | +1.0 percentage points |
Minimum liquidity holdings ratio | 17.3% | 17.1% | -0.2 percentage points |
Net stable funding ratio | 124.1% | 120.3% | -3.7 percentage points |
Key statistics for ADIs conducting residential mortgage lending for the quarter were:2
June 2022 | June 2023 | Year on Year Change | |
|---|---|---|---|
Residential mortgages – credit outstanding | $2,076.1 billion | $2,170.1 billion | 4.5% |
of which: Owner-occupied | $1,364.8 billion | $1,445.2 billion | 5.9% |
of which: Investment | $630.5 billion | $650.3 billion | 3.1% |
Residential mortgages – credit outstanding | June 2022 (share of total) | June 2023 (share of total) | Year on Year Change |
|---|---|---|---|
Owner-occupied | 66.9% | 67.5% | +0.6 percentage points |
Investment | 30.9% | 30.4% | -0.5 percentage points |
Interest-only | 11.1% | 11.1% | stable |
LVR ≥ 90 per cent | 3.6% | 3.1% | -0.5 percentage points |
June 2022 quarter | June 2023 quarter | Change | |
New residential mortgage loans funded | $159.6 billion | $151.0 billion | -5.4% |
New residential mortgage loans funded during the quarter | June 2022 (share of total) | June 2023 (share of total) | Change |
|---|---|---|---|
Owner-occupied | 67.1% | 66.4% | -0.7 percentage points |
Investment | 30.9% | 31.6% | 0.7 percentage points |
Interest-only | 20.0% | 18.7% | -1.4 percentage points |
LVR ≥ 90 per cent | 6.4% | 5.2% | -1.2 percentage points |
Debt-to-income ≥ 6x | 22.1% | 6.1% | -16.0 percentage points |
Key commercial property statistics for ADIs for the June 2023 quarter were:
June 2022 | June 2023 | Year on Year Change | |
|---|---|---|---|
Total commercial property limits | $413.6 billion | $435.3 billion | 5.2% |
Total commercial property actual exposures | $357.3 billion | $375.3 billion | 5.0% |
The Quarterly ADI Performance publication contains information on ADIs’ financial performance, financial position, capital adequacy, asset quality, liquidity and key financial performance ratios.
The Quarterly ADI Property Exposures publication contains data on commercial and residential property exposures, including detail on risk indicators, serviceability characteristics and non-performing loans.
Copies of the June 2023 publications are available at: .
Footnotes:
1 Excluding ADIs that are not banks, building societies or credit unions.
2 See Explanatory Notes of QPEX for details of share calculations.
