How the country’s lenders and banks are performing in 2019

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June 20 2019
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So far this year, it’s a case of mixed results for Australia’s authorised deposit-taking institutions (ADIs), according to fresh data from the banking regulator.

ADIs are a combination of the country’s major banks, domestic banks, locally owned banks, foreign subsidiary banks, foreign branch banks, building societies, credit unions and other ADIs that are not a banking, building society and credit union.

In Australia, there are currently 145 ADIs operating, compared to 144 from December 2018 and 147 at 31 March 2018.

Financial position

ADIs have netted after-tax $34.7 billion for the year ending 31 March 2019, according to APRA’s Quarterly Authorised Deposit-taking Institution Performance Statistics.

The total assets for all ADIs was $4.83 trillion at 31 March 2019, which is an increase of $158.1 billion or 3.4 per cent.

The total gross loans and advances for all ADIs was $3.35 trillion, an increase of $136.2 billion or 4.2 per cent.

The financial performance of the ADIs was down by $1.7 billion in a 4.6 per cent reduction on last year’s result.

The cost-to-income ratio for all ADIs was 51.3 per cent for the year ending 31 March 2019, compared to 48.5 per cent for the same reporting period.

Capital adequacy

The total capital ratio for all ADIs was 14.9 per cent, which is an increase from 14.8 per cent at 31 March 2018.

The common equity tier 1 ratio for all ADIs was 11 per cent, which has grown from 10.7 per cent.

The risk-weighted assets (RWAs) for all ADIs was $2.00 trillion, an increase of 14.1 billion or 0.7 of a percentage point.

Asset quality

Impaired facilities were up by $12.1 billion at 31 March 2019, which is an increase of $0.7 billion or 6.4 per cent. Past due items were $17.4 billion, which is a 13.5 per cent increase which equates to $2.1 billion.

Impaired facilities and past due items as a proportion of gross loans and advances was 0.88 of a percentage point at 31 March 2019, an increase from 0.83 of a percentage point at 31 March 2018.

Specific provisions were $6.3 billion at 31 March 2019. This is an increase of $0.4 billion (6.7 per cent) on 31 March 2018. Specific provisions as a proportion of gross loans and advances was 0.19 of a percentage point at 31 March 2019, an increase from 0.18 of a percentage point at 31 March 2018.

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About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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