APRA releases quarterly authorised deposit-taking institution statistics for March 2024

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 31 March 2024.

ADIs are well-capitalised and well-positioned to navigate through potential economic challenges on the horizon. Capital ratios reached a new high, despite narrowing margins and slowing profit growth. Profit levels remained in line with levels seen over the past decade. Liquidity and funding levels remained well above minimum requirements. ADIs’ liquidity positions remained strong in the lead up to the final repayments of the Term Funding Facility in the June 2024 quarter. Non-performing loans increased, but potential credit losses are mitigated by high levels of well-secured loans.

Residential mortgage credit growth moderated, but remains above pre-pandemic levels, despite higher interest rates and pressure on ADIs’ lending margins.

Strong demand in the industrial sector supported growth in commercial real estate lending, although the overall rate of growth continued to slow. Non-performing commercial real estate exposures increased but remained at low levels.

Key statistics for ADIs1 for the March 2024 quarter were:

March 2023

March 2024

Year on Year Change

Net profit after tax (year-end)

$41.2 billion

$39.4 billion

-4.3%

Total assets

$6,090.4 billion

$6,205.3 billion

+1.9%

Total capital base

$428.3 billion

$449.0 billion

+4.8%

Total risk-weighted assets

$2,189.5 billion

$2,192.9 billion

+0.2%

Total capital ratio

19.6%

20.5%

+0.9 percentage points

Liquidity coverage ratio

137.7%

136.5%

-1.2 percentage points

Minimum liquidity holdings ratio

17.8%

17.8%

stable

Net stable funding ratio

121.7%

118.2%

-3.5 percentage points

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

March 2023

March 2024

Year on Year Change

Residential mortgages – credit outstanding

$2,141.5 billion

$2,230.0 billion

4.1%

of which: Owner-occupied

$1,424.0 billion

$1,493.5 billion

4.9%

of which: Investment

$642.7 billion

$667.0 billion

3.8%

Residential mortgages – credit outstanding

March 2023 (share of total)

March 2024 (share of total)

Year on Year Change

Owner-occupied

67.5%

67.8%

+0.3 percentage points

Investment

30.5%

30.3%

-0.2 percentage points

LVR ≥ 80 per cent

19.0%

17.8%

-1.2 percentage points

Loans 30-89 days past due

0.5%

0.7%

+0.2 percentage points

Non-performing loans

0.7%

1.0%

+0.3 percentage points

March 2023 quarter

March 2024 quarter

Change

New residential mortgage loans funded

$132.8 billion

$131.1 billion

-1.2%

New residential mortgage loans funded during the quarter

March 2023 (share of total)

March 2024 (share of total)

Change

Owner-occupied

67.8%

64.6%

-3.2 percentage points

Investment

30.3%

33.2%

+2.9 percentage points

LVR ≥ 80 per cent

29.0%

31.1%

+2.1 percentage points

Debt-to-income ≥ 6x

7.5%

5.2%

-2.3 percentage points

Key commercial property statistics for ADIs for the March 2024 quarter were:

March 2023

March 2024

Year on Year Change

Total commercial property limits

$437.3 billion

$449.9 billion

2.9%

Total commercial property actual exposures

$403.7 billion

$419.0 billion

3.8%

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 2024 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.

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