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 September 2023.
The banking industry remained well capitalised, with profitability contributing to increases in the capital base. Liquidity buffers remain well above minimum requirements. Asset quality remained robust.
Housing credit growth continued over the year to September 2023. Mortgage refinancing reached a new high in absolute terms, in part driven by strong competition. New lending remains prudent with lending at a high debt-to-income (DTI) ratio or a high loan-to-valuation ratio (LVR) declining.
Key statistics for ADIs for the September 2023 quarter were:
September 2022 | September 2023 | Year on Year Change | |
Net profit after tax (year-end) | $39.3 billion | $42.2 billion | +7.2% |
Total assets | $6,190.1 billion | $6,174.6 billion | -0.3% |
Total capital base | $409.6 billion | $434.6 billion | +6.1% |
Total risk-weighted assets | $2,318.8 billion | $2,196.3 billion | -5.3% |
Total capital ratio | 17.7% | 19.8% | +2.1 percentage points |
Liquidity coverage ratio | 132.7% | 136.8% | +4.1 percentage points |
Minimum liquidity holdings ratio | 17.7% | 17.3% | -0.4 percentage points |
Net stable funding ratio | 122.8% | 118.8% | -4.0 percentage points |
Key statistics for ADIs conducting residential mortgage lending for the quarter were:
September 2022 | September 2023 | Year on Year Change | |
Residential mortgages – credit outstanding | $2,090.7 billion | $2,185.3 billion | 4.5% |
of which: Owner-occupied | $1,381.2 billion | $1,457.0 billion | 5.5% |
of which: Investment | $631.7 billion | $655.9 billion | 3.8% |
Residential mortgages – credit outstanding | September 2022 (share of total) | September 2023 (share of total) | Year on Year Change |
Owner-occupied | 67.1% | 67.5% | +0.4 percentage points |
Investment | 30.7% | 30.4% | -0.3 percentage points |
Interest-only | 11.1% | 11.0% | -0.1 percentage points |
LVR ≥ 90 per cent | 4.0% | 3.7% | -0.2 percentage points |
September 2022 quarter | September 2023 quarter | Change | |
New residential mortgage loans funded | $151.0 billion | $150.9 billion | Stable |
New residential mortgage loans funded during the quarter | September 2022 (share of total) | September 2023 (share of total) | Change |
Owner-occupied | 68.1% | 66.1% | -2.0 percentage points |
Investment | 29.8% | 31.9% | +2.0 percentage points |
Interest-only | 19.6% | 18.3% | -1.2 percentage points |
LVR ≥ 90 per cent | 6.2% | 4.8% | -1.4 percentage points |
Debt-to-income ≥ 6x | 17.1% | 5.7% | -11.4 percentage points |
Key commercial property statistics for ADIs for the September 2023 quarter were:
September 2022 | September 2023 | Year on Year Change | |
Total commercial property limits | $417.0 billion | $437.6 billion | 4.9% |
Total commercial property actual exposures | $362.0 billion | $406.9 billion | 12.4% |
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 September 2023 publications are available at: .
Footnotes:
Excluding ADIs that are not banks, building societies or credit unions.
See Explanatory Notes of QPEX for details of share calculations.
