Financial Stability Review – March 2004 List of tables

  • Table 1: Consensus Forecasts
  • Table 2: Household Assets
  • Table 3: Components of Profits – the Five Largest Banks (Consolidated)
  • Table 4: Distressed Assets
  • Table 5: ADIs' Housing Lending
  • Table 6: Interest-only Loans
  • Table 7: Impaired Australian Commercial Property Exposures
  • Table 8: Australian Banks' Overseas Lending – 2003
  • Table 9: Long-Term Ratings of Australian Banks
Table 1: Consensus Forecasts
Year-average, per cent
Date published 2003 2004
Sep 2003 Mar 2004
United States 3.1 3.9 4.6
Euro area 0.4 1.7 1.7
Japan 2.7 1.2 2.8
China 9.1 7.6 8.3
Other east Asia 3.6 4.8 5.4
G7 2.2 2.8 3.4
Australia's major
trading partners
3.4 3.6 4.3

Source: Consensus Economics

Table 2: Household Assets
Share of total Average
annual growth
Per cent Per cent
Dec 1990 Dec 1995 Dec 2000 Sep 2003 Dec 2000 – Sep 2003
Housing 55 53 55 65 23
Consumer durables 7 6 4 3 6
Financial assets 39 41 41 32 6
– Superannuation and life offices 18 21 22 16 4
– Equities and unit trusts 4 5 8 6 3
– Currency and deposits 12 11 9 8 10
– Other 4 4 2 2 12
Total 100 100 100 100 16

Sources: ABS; RBA

Table 3: Components of Profits – the Five Largest Banks (Consolidated)
2003 Year-on-year growth(a)
$b Per cent
Income
Net interest income 22.6 5.3
Non-interest income(b) 17.3 6.5
Expenses
Operating expenses 20.7 2.0
Provision for doubtful debts 2.1 −14.7
Goodwill amortisation(c) 1.2 68.8
Profit
Net profit before tax 15.8 12.0
Net profit after tax 11.2 6.0
Return on assets (before tax) 1.38 per cent 0.05 percentage points
Return on equity (before tax) 19.37 per cent −0.75 percentage points

(a) Excludes the impact of National Australia Bank's US subsidiary HomeSide on 2002 results.
(b) Includes profits from wealth management businesses.
(c) Includes revaluations of wealth management businesses.

Sources: Banks' annual reports; RBA calculations

Table 4: Distressed Assets(a)
Per cent of total loans
2001 Latest(h)
Australia(b) 1.4 0.7
Germany(b) 4.9 5.0
Japan(b) (c) 7.4 7.2
New Zealand(d) 0.8 0.5
UK(e) 2.6 2.2
USA(f)(g) 0.9 0.7

(a) Includes non-accrual loans, restructured loans and loans more than 90 days in arrears
(b) All banks
(c) Includes loans to borrowers in legal bankruptcy, loans in arrears by 90 days or more and restructured loans
(d) Locally incorporated banks
(e) Large commercial banks
(f) Commercial banks with assets over US$1 billion
(g) Excludes restructured loans
(h) Australia, Dec 2003; Germany, Dec 2002; Japan, Sep 2003; NZ, Sep 2003; UK, Jun 2003; USA, Sep 2003

Sources: APRA; IMF; National Sources

Table 5: ADIs' Housing Lending
As at March 2003, per cent of total value of housing loans outstanding
Annual default rate(a) 0.2
Share of investor housing loans 33.8
Share of loans with LVR > 95% 2.1
Share of loans with age < 2 years 64.8
Share of loans with LVR > 80% and age < 2 years 13.3
Share of mortgage-insured loans 18.4
LVR > 80% not mortgage insured(b) 31.4

(a) Loans currently in default as a share of total number of loans outstanding
(b) Share of value of housing loans with LVR > 80%

Source: APRA

Table 6: Interest-only Loans
Per cent
As a share of value of: Total Owner-occupier Investment
Housing loans outstanding
(as at end June 2003)
13.8 4.4 31.3
Housing loan approvals
(year to end June 2003)
21.4 5.6 46.9
Source: RBA
Table 7: Impaired Australian Commercial Property Exposures
All banks, per cent of total Australian commercial property exposures
September 1997 September 2003
Office 2.0 0.1
Retail 0.5 0.0
Industrial 2.7 0.5
Residential 2.4 0.4
Tourism & Leisure 1.2 0.8
Other 4.6 0.7
Total 1.9 0.3
Source: APRA
Table 8: Australian Banks' Overseas Lending – 2003
All banks, per cent of total assets
New Zealand 8.4(a)
United Kingdom 5.4
Euro area 3.0
United States 1.7
Japan 0.4
Other 2.7
Total 21.7

(a) Excludes ANZ's recent acquisition of National Bank of New Zealand

Source: APRA

Table 9: Long-Term Ratings of Australian Banks
Standard & Poor's Moody's Fitch
Adelaide Bank BBB Baa2 na
AMP Bank BBB+ Baa1 na
Arab Bank na Baa3 BBB+
Australia and New Zealand Banking Group AA− Aa3 AA−
Bank of Queensland BBB Baa3 BBB
BankWest (Bank of Western Australia) A A1 na
Bendigo Bank BBB na BBB+
Commonwealth Bank of Australia AA− Aa3 AA+
ING Bank (Australia) AA− Aa2 na
Macquarie Bank A A2 A+
National Australia Bank AA− Aa3 AA
St George Bank A A2 A+
Suncorp-Metway A A2 A
Westpac Banking Corporation AA− Aa3 AA

Sources: Bloomberg; Fitch; Moody's; Standard and Poor's