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 2019 | March 2020 | Change | |
|---|---|---|---|
| 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 2019 | March 2020 | Change | |
|---|---|---|---|
| Capital adequacy ratio | 14.9% | 15.7% | +0.8 percentage points |
| Minimum liquidity holdings ratio | 15.5% | 18.1% | +2.6 percentage points |
| Liquidity coverage ratio | 130.9% | 150.3% | +19.4 percentage points |
Key non-performing loans statistics for ADIs for the quarter were:
| March 2019 | March 2020 | Change | |
|---|---|---|---|
| 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 outstanding | March 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 funded | March 2019 quarter | March 2020 quarter | Change |
|---|---|---|---|
| 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 2019 | March 2020 | Change |
|---|---|---|---|
| Total commercial property limits | $334.7 billion | $353.0 billion | +5.5% |
| Total commercial property exposures | $285.8 billion | $301.3 billion | +5.4% |
