APRA releases quarterly authorised deposit-taking institution statistics for March 2021
The Australian Prudential Regulation Authority (APRA) has released the Quarterly Authorised Deposit-taking Institution (ADI) Performance and the Quarterly Authorised Deposit-taking Institution Property Exposures publications for the quarter ending March 2021.
Measures of ADI industry resilience were strong in the March 2021 quarter. Across the industry, ADIs held strong capital, liquidity and funding positions. Industry profitability improved moderately over the past year, as ADIs had significantly reduced charges for bad or doubtful debts. Moderate ADI credit growth over the quarter was largely driven by increased residential mortgage lending, in particular by owner-occupiers. The share of new higher-risk residential mortgage lending across most key metrics (for example, lending at high loan-to-valuation ratios) declined over the quarter, however the share of new lending at high debt-to-income ratios increased, with interest rates at very low levels. Key measures of asset quality, such as non-performing loan ratios, were stable, but the outlook is uncertain due to the expiry of repayment deferrals and some income support measures at the end of March.
The Quarterly ADI Performance publication contains information on ADIs’ financial performance, financial position, capital adequacy, asset quality, liquidity and key financial performance ratios.
Key statistics for ADIs1 for the March 2021 quarter were:
| March | December | March | Quarter on Quarter | Year on Change |
|---|---|---|---|---|---|
Net profit after tax (year-end) | $28.3 billion | $21.9 billion | $29.4 billion | +34.0% | +3.8% |
Total assets | $5,599.2 billion | $5,302.3 billion | $5,206.8 billion | -1.8% | -7.0% |
Total capital base | $340.2 billion | $369.0 billion | $378.1 billion | +2.5% | +11.1% |
Total risk-weighted assets | $2,161.9 billion | $2,100.6 billion | $2,073.6 billion | -1.3% | -4.1% |
| March | December | March | Quarter on Quarter | Year on Year Change |
|---|---|---|---|---|---|
Capital adequacy ratio | 15.7% | 17.6% | 18.2% | +0.7 percentage points | +2.5 percentage points |
Minimum liquidity holdings ratio | 18.1% | 20.2% | 19.7% | -0.5 percentage points | 1.6 percentage points |
Liquidity coverage ratio | 150.3% | 141.8% | 131.2% | -10.6 percentage points | -19.0 percentage points |
| March | December | March | Quarter on Quarter | Year on Year Change |
|---|---|---|---|---|---|
Impaired assets and past due items2 | $33.8 billion | $36.4 billion | $37.3 billion | +2.5% | +10.2% |
The Quarterly ADI Property Exposures (QPEX) publication contains data on commercial and residential property exposures, including detail on risk indicators, serviceability characteristics and non-performing loans.
Key statistics for ADIs conducting residential mortgage lending for the quarter were3:
| March | December | March | Quarter on Quarter | Year on Year Change |
|---|---|---|---|---|---|
Residential mortgages – credit outstanding | $1,835.2 billion | $1,878.5 billion | $1,900.5 billion | +1.2% | +3.6% |
of which: Owner-occupied | $1,117.8 billion | $1,177.6 billion | $1,200.4 billion | +1.9% | +7.4% |
of which: Investment | $614.6 billion | $609.6 billion | $610.9 billion | +0.2% | -0.6% |
Residential mortgages – credit outstanding | March 2020 | December 2020 | March 2021 | Quarter on Quarter | Year on Year Change |
|---|---|---|---|---|---|
Owner-occupied | 62.7% | 64.2% | 64.6% | +0.4 percentage points | +1.9 percentage points |
Investment | 34.5% | 33.2% | 32.9% | -0.3 percentage points | -1.6 percentage points |
Interest-only | 17.4% | 14.5% | 13.9% | -0.6 percentage points | -3.5 percentage points |
LVR ≥ 90 per cent | 4.8% | 4.8% | 4.7% | -0.1 percentage points | Unchanged |
Non-performing | 0.9% | 1.0% | 1.1% | Unchanged | +0.1 percentage points |
| March | December | March
| Quarter on Quarter | Year on Year Change |
|---|---|---|---|---|---|
New residential mortgage loans funded during the quarter | $94.6 billion | $128.1 billion | $127.2 billion | -0.8% | +34.4% |
New residential mortgage loans funded during the quarter | March 2020 | December 2020 | March 2021 | Quarter on Quarter | Year on Year Change |
|---|---|---|---|---|---|
Owner-occupied | 68.5% | 69.8% | 69.9% | +0.1 percentage points | +1.5 percentage points |
Investment | 29.7% | 28.6% | 28.6% | Unchanged | -1.1 percentage points |
Interest-only | 18.1% | 19.4% | 19.5% | +0.1 percentage points | +1.3 percentage points |
LVR ≥ 90 per cent | 9.9% | 11.3% | 10.4% | -0.9 percentage points | +0.5 percentage points |
Third-party originated | 51.1% | 54.6% | 54.0% | -0.7 percentage points | +2.9 percentage points |
Debt-to-income ≥ 6x | 16.3% | 17.3% | 19.1% | +1.8 percentage points | +2.7 percentage points |
Key commercial property statistics for ADIs forMarch 2021 were:
| March | December | March | Quarter on Quarter | Year on Year Change |
|---|---|---|---|---|---|
Total commercial property limits | $353.4 billion | $359.1 billion
| $362.4 billion | +0.9% | +2.6% |
Total commercial property exposures | $301.6 billion | $302.7 billion | $305.4 billion | +0.9% | +1.3% |
Copies of the March 2021 publications are available at: Quarterly authorised deposit-taking institution statistics.
Footnotes:
1Excluding ADIs that are not banks, building societies or credit unions.
2Repayment deferrals may have dulled the anticipated deterioration in asset quality.
3See 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.