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

Tuesday 6 December 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 September 2022.

ADIs’ profitability, asset quality, capital and liquidity positions remained strong over the September 2022 quarter. ADIs’ net profit increased by 8.0 per cent for the year ended September 2022, largely due to improvements in net interest income. The non-performing loan ratio improved in the quarter, with rising interest rates yet to have a material impact on asset quality.  

The risk characteristics of ADIs’ new residential mortgage lending are improving. Lending at high debt-to-income (DTI ≥ 6 times) has declined substantially over the past 12 months, from 23.3 per cent of new lending in the September 2021 quarter, to 17.1 per cent in September 2022. New lending at high loan-to-valuation ratios (LVR ≥ 90 per cent) also declined, from 7.5 per cent in September 2021 to 6.2 per cent in September 2022. New residential mortgages funded in the quarter were $151.0 billion, declining by 10.0 per cent compared to the same quarter last year; however, this is still above pre-pandemic levels.

Commercial real estate lending has continued to grow strongly. ADIs’ commercial property limits increased by 9.5 per cent, and actual exposures by 10.0 per cent, compared to the same quarter last year. Non-performing commercial property loans as a share of commercial property actual exposures remained unchanged from the previous June quarter at 0.5 per cent.

Key statistics for ADIs1 for the September 2022 quarter were:    

 

September 2021

September 2022

Year on Year Change

Net profit after tax (year-end)

$36.4 billion

$39.3 billion

+8.0%

Total assets

$5,474.8 billion

$6,190.1 billion

+13.1%

Total capital base

$395.1 billion

$409.6 billion

+3.7%

Total risk-weighted assets

$2,133.0 billion

$2,318.8 billion

+8.7%

Total capital ratio

18.5%

17.7%

-0.9 percentage points

Minimum liquidity holdings ratio

19.6%

17.7%

-1.9 percentage points

Liquidity coverage ratio

132.9%

132.9%

Unchanged

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

 

September 2021

September 2022

Year on Year Change

Residential mortgages – credit outstanding

$1,962.0 billion

$2,090.7 billion

6.6%

of which: Owner-occupied

$1,282.8 billion

$1,379.1 billion

7.5%

of which: Investment

$595.3 billion

$633.6 billion

6.4%

Residential mortgages – credit outstanding

September 2021 (share of total)

September 2022 (share of total)

Year on Year Change

Owner-occupied

66.7%

67.0%

+0.3 percentage points

Investment

31.0%

30.8%

-0.2 percentage points

Interest-only

12.3%

11.1%

-1.2 percentage points

LVR ≥ 90 per cent

4.3%

3.4%

-0.9 percentage points

 

September 2021 quarter

September 2022 quarter

Change

New residential mortgage loans funded

$167.8 billion

$151.0 billion

-10.0%

New residential mortgage loans funded during the quarter

September 2021 (share of total)

September 2022 (share of total)

Change

Owner-occupied

68.9%

68.0%

-1.0 percentage points

Investment

29.3%

29.9%

+0.6 percentage points

Interest-only

19.0%

19.6%

+0.6 percentage points

LVR ≥ 90 per cent

7.5%

6.2%

-1.3 percentage points

Debt-to-income ≥ 6x

23.3%

17.1%

-6.2 percentage points

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

 

September 2021

September 2022

Year on Year Change

Total commercial property limits

$381.0 billion

$417.1 billion

9.5%

Total commercial property actual exposures

$329.2 billion

$362.0 billion

10.0%

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 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.

Statistics

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.