The banking industry remains well capitalised
The Australian Prudential Regulation Authority (APRA) has released the Quarterly Authorised Deposit-taking Institution (ADI) Performance and the Quarterly ADI Property Exposure statistics for the September quarter.
The Quarterly ADI Performance publication included information regarding the financial performance of ADIs as well as its financial position, capital adequacy, asset quality, liquidity, and key financial performance ratios.
Meanwhile, the Quarterly ADI Property Exposures publication involved data regarding commercial and residential property exposures which also included details about risk indicators, serviceability characteristics, and non-performing loans.
What did the statistics show?
According to the report, the banking industry continued to be well capitalised as its profitability contributed to the increases in the capital base. Liquidity buffers were still above the minimum requirements while asset quality maintained its strength.
The growth of housing credit continued year-over-year in September, while mortgage refinancing reached a new high in absolute terms, which was partly driven by the presence of strong competition. New lending continued its prudence as it had a high debt-to-income (DTI) ratio or a declining high loan-to-valuation ratio (LVR).
Net profit after tax in September 2023 was at $42.2 billion, which was a 7.2% increase year-over-year. Total assets saw a year-over-year decrease of 0.3% with September 2022’s $6,190.1 billion falling to $6,174.6 billion. Total capital base was at $434.6 billion which was a 6.1% increase from the previous year.
The credit outstanding for residential mortgages was at $2,185.3 billion in September 2023 which was a 4.5% year-on-year change. Those that were owner-occupied made up for $1,457 billion while investment took up the remaining $655.9 billion. New residential mortgage loans that were funded were $150.9 billion in the September 2023 quarter.
The total commercial property limits rested at $437.6 billion in September 2023, which was a 4.9% year-on-year change, while total commercial property actual exposures was at $406.9 billion, marking a 12.4% year-on-year change.
