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APRA releases quarterly authorised deposit-taking institution statistics for June 2022

Tuesday 6 September 2022

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 2022.

The ADI industry remained strong in the June 2022 quarter. Industry net profit improved over the year, up $5.7 billion, returning to pre-pandemic levels. A reduction in charges for bad or doubtful debts (down $2.5 billion) also contributed to ADIs’ increased profit, as provisions raised during the earlier stages of the pandemic continue to be released. ADIs’ capital positions remain well above regulatory minimums, having moderated from pandemic highs. Liquidity positions also remain strong as the Reserve Bank normalises monetary conditions.

Credit growth and asset quality is healthy. New residential mortgage lending increased by $3.7 billion in the June 2022 quarter, compared to the same quarter last year. The share of new lending with high debt-to-income ratios is starting to trend down, but remains elevated. Non performing loans as a share of total credit outstanding remained low, declining from 0.81 per cent to 0.78 per cent in the June quarter.

Commercial real estate lending has continued to grow. ADIs’ commercial property limits increased by 12.0 per cent, and actual exposures by 11.6 per cent, compared to the June 2021 quarter. Non-performing commercial property loans as a share of commercial property actual exposures remained steady at 0.5 per cent in the June quarter.   

Key statistics for ADIs1 for the June 2022 quarter were:    

 

June 2021

June 2022

Year on Year Change

Net profit after tax (year-end)

$32.3 billion

$38.1 billion

+17.7%

Total assets

$5,381.8 billion

$6,002.6 billion

+11.5%

Total capital base

$387.1 billion

$388.5 billion

+0.4%

Total risk-weighted assets

$2,105.9 billion

$2,304.2 billion

+9.4%

Total capital ratio

18.4%

16.9%

-1.5 percentage points

Minimum liquidity holdings ratio

18.5%

17.3%

-1.2 percentage points

Liquidity coverage ratio

132.4%

134.7%

+2.3 percentage points

Key statistics for ADIs conducting residential mortgage lending for the quarter were:2

 

June 2021

June 2022

Year on Year Change

Residential mortgages – credit outstanding

$1,934.7 billion

$2,076.1 billion

7.3%

of which: Owner-occupied

$1,254.9 billion

$1,364.8 billion

8.8%

of which: Investment

$592.1 billion

$630.5 billion

6.5%

Residential mortgages – credit outstanding

June 2021 (share of total)

June 2022 (share of total)

Year on Year Change

Owner-occupied

66.3%

66.9%

+0.6 percentage points

Investment

31.3%

30.9%

-0.4 percentage points

Interest-only

13.0%

11.1%

-1.9 percentage points

LVR ≥ 90 per cent

4.6%

3.6%

-1.0 percentage points

 

June 2021 quarter

June 2022 quarter

Change

New residential mortgage loans funded

$155.9 billion

$159.6 billion

2.4%

New residential mortgage loans funded during the quarter

June 2021 (share of total)

June 2022 (share of total)

Change

Owner-occupied

70.6%

67.1%

-3.5 percentage points

Investment

27.8%

30.9%

+3.1 percentage points

Interest-only

18.4%

20.0%

+1.6 percentage points

LVR ≥ 90 per cent

8.6%

6.4%

-2.2 percentage points

Debt-to-income ≥ 6x

21.9%

22.1%

+0.3 percentage points

Key commercial property statistics for ADIs for the June 2022 quarter were:

 

June 2021

June 2022

Year on Year Change

 

Total commercial property limits

 

$369.5 billion

$413.7 billion

12.0%

 

Total commercial property actual exposures

$320.3 billion

$357.4 billion

11.6%

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 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

Media enquiries

Contact APRA Media Unit, on +61 2 9210 3636

All other enquiries

For more information contact APRA on 1300 558 849.

The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding $7.9 trillion in assets for Australian depositors, policyholders and superannuation fund members.