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 31 March 2023.
The profitability, asset quality, capital and liquidity positions of ADIs remained strong. Capital ratios increased during the quarter as a result of APRA’s recent reforms to the capital framework for ADIs. The non-performing loan ratio was stable but provisioning increased as a result of an expected deterioration in asset quality.
Housing credit continued to moderate over the year to March. Non-performing loans and early arrears remained well below pre-pandemic levels. Higher risk new lending, such as new loans with high loan-to-valuation ratios and high debt-to-income ratios, continued to decline.
Additionally, APRA has released the first edition of ADI Centralised Publication (ADICP). This contains entity-level key capital and liquidity data to enhance the transparency of the ADI industry and provide relief for smaller ADIs from disclosure obligations. More details on ADICP are available on the APRA website.
APRA has also published a response to its consultation on proposed updates to the Quarterly Authorised Deposit-taking Institution Performance publication. The letter to industry and non-confidential submissions are available here.
Key statistics for ADIs1 for the March 2023 quarter were:
| March 2022 | March 2023 | Year on Year Change | |
|---|---|---|---|
| Net profit after tax (year-end) | $38.3 billion | $41.2 billion | +7.7% |
| Total assets | $5,757.7 billion | $6,090.5 billion | +5.8% |
| Total capital base | $386.7 billion | $428.3 billion | +10.8% |
| Total risk-weighted assets | $2,248.2 billion | $2,189.7 billion | -2.6% |
| Total capital ratio | 17.2% | 19.6% | +2.4 percentage points |
| Liquidity coverage ratio | 135.7% | 137.7% | +2.0 percentage points |
| Minimum liquidity holdings ratio | 18.5% | 17.8% | -0.7 percentage points |
| Net stable funding ratio | 126.7% | 121.7% | -5.0 percentage points |
Key statistics for ADIs conducting residential mortgage lending for the quarter were:2
| March 2022 | March 2023 | Year on Year Change | |
|---|---|---|---|
| Residential mortgages – credit outstanding | $2,033.0 billion | $2,141.5 billion | 5.3% |
| of which: Owner-occupied | $1,335.5 billion | $1,420.5 billion | 6.4% |
| of which: Investment | $617.2 billion | $645.5 billion | 4.6% |
| Residential mortgages - credit outstanding | March 2022 (share of total) | March 2023 (share of total) | Year on Year Change |
|---|---|---|---|
| Owner-occupied | 66.9% | 67.3% | +0.4 percentage points |
| Investment | 30.9% | 30.6% | -0.3 percentage points |
| Interest-only | 11.3% | 11.1% | -0.2 percentage points |
| LVR ≥ 90 per cent | 3.9% | 3.3% | -0.6 percentage points |
| March 2022 quarter | March 2023 quarter | Change | |
|---|---|---|---|
| New residential mortgage loans funded | $145.1 billion | $132.7 billion | -8.5% |
| New residential mortgage loans funded during the quarter | March 2022 (share of total) | March 2023 (share of total) | Change |
|---|---|---|---|
| Owner-occupied | 67.3% | 67.7% | +0.5 percentage points |
| Investment | 30.9% | 30.3% | -0.5 percentage points |
| Interest-only | 19.2% | 18.5% | -0.7 percentage points |
| LVR ≥ 90 per cent | 7.3% | 5.7% | -1.6 percentage points |
| Debt-to-income ≥ 6x | 23.1% | 7.5% | -15.6 percentage points |
Key commercial property statistics for ADIs for the March 2023 quarter were:
| March 2022 | March 2023 | Year on Year Change | |
|---|---|---|---|
| Total commercial property limits | $402.6 billion | $431.9 billion | 7.3% |
| Total commercial property actual exposures | $349.4 billion | $370.8 billion | 6.1% |
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 2023 publications are available at: Quarterly authorised deposit-taking institution statistics.