APRA releases quarterly authorised deposit-taking institution statistics for March 2022
The Australian Prudential Regulation Authority (APRA) has released the Quarterly Authorised Deposit-taking Institution (ADI) Performance and the Quarterly ADI Property Exposures publications for the quarter ending 31 March 2022.
The ADI industry remained strong in the March 2022 quarter. Industry net profit improved over the past year, up $8.9 billion, to be in line with pre-pandemic levels. This is partly driven by the release of provisions raised during the earlier stages of the pandemic. Charges for bad or doubtful debts were down $6.0 billion over the year. ADIs’ capital and liquidity positions are strong and remain above pre-pandemic levels.
New residential mortgage lending was higher compared to the same quarter last year. While new lending with high debt to income ratios declined over the March quarter, it remains elevated, and is considerably above the average level since the data series commenced. Non performing loans remained low, and the value of funds in offset accounts continued to increase.
Commercial real estate lending growth continued to be strong. ADIs’ commercial property limits and actual exposures increased by 11.2 per cent and 11.5 per cent, respectively, over the year.
Key statistics for ADIs1 for the March 2022 quarter were:
| March 2021 | March 2022 | Year on Year Change |
Net profit after tax (year-end) | $29.4 billion | $38.3 billion | +30.3% |
Total assets | $5,206.8 billion | $5,757.7 billion | +10.6% |
Total capital base | $378.1 billion | $387.6 billion | +2.5% |
Total risk-weighted assets | $2,073.9 billion | $2,248.1 billion | +8.4% |
Total capital ratio | 18.2% | 17.2% | -1.0 percentage points |
Minimum liquidity holdings ratio | 19.7% | 18.5% | -1.1 percentage points |
Liquidity coverage ratio | 131.1% | 137.4% | +6.3 percentage points |
Key statistics for ADIs conducting residential mortgage lending for the quarter were2:
| March 2021 | March 2022 | Year on Year Change |
Residential mortgages – credit outstanding | $1,900.5 billion | $2,033.0 billion | 7.0% |
of which: Owner-occupied | $1,221.4 billion | $1,335.5 billion | 9.3% |
of which: Investment | $589.9 billion | $617.2 billion | 4.6% |
Residential mortgages – credit outstanding | March 2021 (share of total) | March 2022 (share of total) | Year on Year Change |
Owner-occupied | 65.8% | 66.9% | +1.1 percentage points |
Investment | 31.8% | 30.9% | -0.8 percentage points |
Interest-only | 13.9% | 11.3% | -2.6 percentage points |
LVR ≥ 90 per cent | 4.7% | 3.9% | -0.9 percentage points |
| March 2021 quarter | March 2022 quarter | Change |
New residential mortgage loans funded | $127.2 billion | $145.0 billion | 14.0% |
New residential mortgage loans funded during the quarter | March 2021 (share of total) | March 2022 (share of total) | Change |
Owner-occupied | 69.9% | 67.3% | -2.7 percentage points |
Investment | 28.6% | 30.9% | +2.3 percentage points |
Interest-only | 19.5% | 19.2% | -0.3 percentage points |
LVR ≥ 90 per cent | 10.4% | 7.3% | -3.1 percentage points |
Debt-to-income ≥ 6x | 18.9% | 23.1% | +4.2 percentage points |
Key commercial property statistics for ADIs for March 2022 were:
| March 2021 | March 2022 | Year on Year Change |
Total commercial property limits | $362.1 billion | $402.6 billion | 11.2% |
Total commercial property exposures | $312.9 billion | $348.9 billion | 11.5% |
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 March 2022 publications are available at: Quarterly authorised deposit-taking institution statistics.
Footnotes
1 Excluding ADIs that are not banks, building societies or credit unions.
2 See Explanatory Notes of QPEX for details of share calculations
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The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding around $9 trillion in assets for Australian depositors, policyholders and superannuation fund members.