APRA releases quarterly authorised deposit-taking institution statistics for 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 31 December 2022.
ADIs’ profitability, asset quality, capital and liquidity positions remain strong. Capital adequacy ratios were broadly stable over the year. The non-performing loan ratio continued to improve, indicating that rising interest rates are yet to have a material impact on asset quality.
New housing lending activity continued to decline from the peaks observed during the pandemic, influenced by increases in the cash rate. However, lending volume is still considerably above pre-pandemic levels. The general risk profile for new residential mortgage lending is improving, as the proportion of new lending at either high loan-to-valuation ratios or at high debt-to-income ratios continues to decline.
ADIs’ commercial property lending portfolios continued to grow in the December 2022 quarter. The asset quality of commercial property exposures remained stable.
Key statistics for ADIs1 for the December 2022 quarter were:
| December 2021 | December 2022 | Year on Year Change |
|---|---|---|---|
Net profit after tax (year-end) | $37.6 billion | $40.6 billion | +8.0% |
Total assets | $5,622.3 billion | $6,089.0 billion | +8.3% |
Total capital base | $391.5 billion | $413.4 billion | +5.6% |
Total risk-weighted assets | $2,191.3 billion | $2,337.6 billion | +6.7% |
Total capital ratio | 17.9% | 17.7% | -0.2 percentage points |
Minimum liquidity holdings ratio | 19.0% | 17.9% | -1.1 percentage points |
Liquidity coverage ratio | 138.1% | 134.7% | -3.4 percentage points |
Key statistics for ADIs conducting residential mortgage lending for the quarter were:2
| December 2021 | December 2022 | Year on Year Change |
|---|---|---|---|
Residential mortgages – credit outstanding | $2,000.6 billion | $2,120.5 billion | 6.0% |
of which: Owner-occupied | $1,311.2 billion | $1,403.5 billion | 7.0% |
of which: Investment | $608.1 billion | $640.4 billion | 5.3% |
Residential mortgages – credit outstanding | December 2021 (share of total) | December 2022 (share of total) | Year on Year Change |
|---|---|---|---|
Owner-occupied | 66.8% | 67.2% | +0.4 percentage points |
Investment | 31.0% | 30.7% | -0.3 percentage points |
Interest-only | 11.7% | 11.1% | -0.6 percentage points |
LVR ≥ 90 per cent | 4.2% | 3.3% | -0.9 percentage points |
| December 2021 quarter | December 2022 quarter | Change |
|---|---|---|---|
New residential mortgage loans funded | $171.0 billion | $150.2 billion | -12.2% |
New residential mortgage loans funded during the quarter | December 2021 (share of total) | December 2022 (share of total) | Change |
|---|---|---|---|
Owner-occupied | 67.8% | 67.6% | -0.1 percentage points |
Investment | 30.4% | 30.3% | -0.1 percentage points |
Interest-only | 19.3% | 19.2% | +0.0 percentage points |
LVR ≥ 90 per cent | 7.9% | 5.9% | -2.0 percentage points |
Debt-to-income ≥ 6x | 24.3% | 11.0% | -13.3 percentage points |
Key commercial property statistics for ADIs for the December 2022 quarter were:
| December 2021 | December 2022 | Year on Year Change |
|---|---|---|---|
Total commercial property limits | $392.1 billion | $426.2 billion | 8.7% |
Total commercial property actual exposures | $336.5 billion | $371.5 billion | 10.4% |
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 December 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.
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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.