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APRA releases quarterly authorised deposit-taking institution statistics for June 2021

Tuesday 7 September 2021

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 June 2021.

Measures of ADI industry resilience were strong in the June 2021 quarter. Across the industry, ADIs held strong capital and liquidity positions. Industry profitability improved over the past year, while non-performing loans remained broadly stable. However, the outlook appears uncertain, given the challenges currently faced by the industry from the delta variant of COVID-19 and ongoing lockdowns. Government stimulus and APRA’s second round of concessionary treatment for loan repayment deferrals should provide some support.

In residential mortgage lending, the share of new lending with high debt-to-income ratios increased over the quarter, continuing to be influenced by the low interest rate environment and increasing house prices. Other measures of higher-risk residential mortgage lending fell, including the share of new lending with high loan-to-valuation ratios. Key measures of asset quality remain strong, although this may be impacted by recent lockdowns and the expected impact on borrower’s ability to service their loans. 

Key statistics for ADIs1 for the June 2021 quarter were:

 

June 2020

June 2021

Year on Year Change

Net profit after tax (year-end)

$26.2 billion

$32.3 billion

+23.5%

Total assets

$5,328.8 billion

$5,382.7 billion

+1.0%

Total capital base

$347.3 billion

$387.1 billion

+11.5%

Total risk-weighted assets

$2,130.3 billion

$2,106.3 billion

-1.1%

Total capital ratio

16.3%

18.4%

+2.1 percentage points

Minimum liquidity holdings ratio

19.1%

18.6%

-0.5 percentage points

Liquidity coverage ratio

137.5%

132.6%

-4.9 percentage points

Impaired assets and past due items

$39.0 billion

$37.5 billion

-4.0%

Key statistics for ADIs conducting residential mortgage lending for the quarter were2:

 

June 2020

June 2021

Year on Year Change

Residential mortgages – credit outstanding

$1,847.6 billion

$1,935.2 billion

4.7%

of which: Owner-occupied

$1,135.4 billion

$1,234.1 billion

8.7%

of which: Investment

$612.6 billion

$613.3 billion

0.1%

Residential mortgages – credit outstanding

June 2020 (share of total)

June 2021 (share of total)

Year on Year Change

Owner-occupied

63.2%

65.2%

+2.0 percentage points

Investment

34.1%

32.4%

-1.7 percentage points

Interest-only

16.2%

12.8%

-3.4 percentage points

LVR ≥ 90 per cent

4.8%

4.6%

-0.2 percentage points

Non-performing

1.1%

1.0%

-0.1 percentage points

 

June 2020

June 2021

Change

New residential mortgage loans funded during the quarter

$111.1 billion

$156.2 billion

40.5%

New residential mortgage loans funded during the quarter

June 2020 (share of total)

June 2021 (share of total)

Change

Owner-occupied

69.0%

70.6%

+1.5 percentage points

Investment

29.1%

27.8%

-1.4 percentage points

Interest-only

18.2%

17.4%

-0.8 percentage points

LVR ≥ 90 per cent

9.2%

8.6%

-0.6 percentage points

Debt-to-income ≥ 6x

16.0%

21.9%

+5.8 percentage points

Key commercial property statistics for ADIs for June 2021 were:

 

June 2020

June 2021

Year on Year Change

Total commercial property limits

$355.8 billion

$369.1 billion

3.7%

Total commercial property exposures

$300.8 billion

$312.5 billion

3.9%

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.

The June 2021 publications are available on the APRA website 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 $7.7 trillion in assets for Australian depositors, policyholders and superannuation fund members.