APRA Releases Quarterly Authorised Deposit-Taking Institution Statistics for March 2020

APRA - Deposit-TakingThe 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 2020.

The banking system remained resilient in the March 2020 quarter. Despite reduced profitability, bank financial positions remained sound due to strong capital levels and support through various policy measures. There were some early declines in capital and asset quality as a result of COVID-19, however the full scale of these impacts will only be seen in the coming quarters.

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 2020 quarter were:

March 2019March 2020Change
Net profit after tax (year-end)$34.3 billion$29.4 billion -14.1%
Total assets$4,825.0 billion$5,600.2 billion+16.1%
Total capital base$298.0 billion$340.2 billion+14.2%
Total risk-weighted assets$2,003.4 billion$2,163.1 billion+8.0%
March 2019March 2020Change
Capital adequacy ratio14.9%15.7% +0.8 percentage points
Minimum liquidity holdings ratio15.5%18.1%+2.6 percentage points
Liquidity coverage ratio130.9%150.3%+19.4 percentage points

Key non-performing loans statistics for ADIs for the quarter were:

March 2019March 2020Change
Impaired assets and past due items$29.6 billion$33.8 billion +14.4%
Total provisions$12.4 billion$14.6 billion+18.1%

The Quarterly ADI Property Exposures (QPEX) publication contains data on commercial and residential property exposures, including detail on mortgage lending such as risk indicators, serviceability characteristics and non-performing loans.

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

Residential mortgages – credit outstandingMarch 2019 March 2020 Change
Owner-occupied$1,094.7 billion$1,117.7 billion +2.1%
Investment$588.6 billion$614.6 billion+4.4%
Non-performing term loans$15.6 billion$17.2 billion+10.1%
Interest-only$405.1 billion$310.5 billion-23.4%
LVR ≥ 95$23.6 billion$19.5 billion-17.4%
Residential mortgages – new loans fundedMarch 2019 quarterMarch 2020 quarterChange
Owner-occupied$54.2 billion$64.5 billion+19.2%
Investment$22.7 billion$27.9 billion+23.0%
Interest-only$15.2 billion$17.0 billion+11.4%
LVR ≥ 95$1.2 billion$1.8 billion+52.5%
Third-party originated$38.3 billion$47.9 billion+25.2%
Debt-to-income ≥ 6x$11.4 billion$15.3 billion+34.1%

Key commercial property statistics for ADIs for March 2020 were:

Commercial property March 2019March 2020Change
Total commercial property limits$334.7 billion$353.0 billion+5.5%
Total commercial property exposures$285.8 billion$301.3 billion+5.4%