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RESERVE BANK OF AUSTRALIA

Financial Stability Review – September 2007

List of tables

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Chapters

Table 1: Banks' Half-year Profit Results

Table 2: Australian-owned Banks' Foreign Exposures

Table 3: Housing Loans

Table 4: Long-term Ratings of Australian Banks

Table 5: Assets under Management

Table 6: Household Assets

Table 7: House Prices

Table 8: Banks' Business Lending

Table 9: Banks' Australian Commercial Property Exposures

Boxes

Table A1: Collateral Underlying Outstanding ABCP

Table 1: Banks’ Half-Year Profit Results(a)
Five largest banks, consolidated
  2006
$b
2007
$b
Growth
Per cent
Per cent of
average assets(b)
(a) The six months to March for ANZ Banking Group, National Australia Bank, St George Bank and Westpac Banking Corporation; and the six months to June for Commonwealth Bank of Australia
(b) Annualised half‑year results
(c) Before outside equity interests
Sources: Banks’ annual and interim reports
Income
Net interest income 14.6 16.1 10.0 1.9
Net income from wealth management 3.3 4.0 20.7 0.5
Other non-interest income 6.9 7.0 0.8 0.8
Expenses
Operating expenses 11.9 12.2 2.9 1.5
Bad and doubtful debts 1.0 1.2 25.2 0.1
Profit(c)
Net profit before tax 12.0 13.6 13.5 1.6
Net profit after tax 8.0 9.5 18.1 1.1
Table 2: Australian-owned Banks’ Foreign Exposures
June 2007, ultimate risk basis
  Total of which:
Level
$b
Share
Per cent
Cross-border
$b
Local
$b
(a) Includes Hong Kong and Singapore
Source: APRA
New Zealand 212.2 44.5 5.8 206.4
United Kingdom 116.6 24.5 25.7 90.9
United States 48.3 10.1 31.6 16.7
Other developed countries 64.3 13.5 59.0 5.4
Developing countries 18.9 4.0 10.9 8.0
Offshore centres(a) 15.7 3.3 10.3 5.3
Other 0.5 0.1 0.4 0.1
Total 476.5 100.0 143.7 332.8
Memo: Per cent of total assets 29.4   8.9 20.5
Table 3: Housing Loans
  Per cent of approvals Per cent of
outstandings
2000 2002 2004 2006 2007
Sources: ABS; banks’ annual reports; RBA; Standard & Poor’s
Prime loans          
Full-doc >99 96 88½ 88 92
Low-doc 3 10 10 7
Non-conforming loans 1 2 1
Table 4: Long-term Ratings of Australian Banks
As at 20 September 2007
  Current Last change
Direction Date
Source: Standard & Poor’s
Adelaide Bank BBB+ October 2004
AMP Bank A− July 2004
ANZ Banking Group AA February 2007
Arab Bank Australia A− January 2007
Bank of Queensland BBB+ April 2005
BankWest AA− August 2006
Bendigo Bank BBB+ February 2005
Commonwealth Bank of Australia AA February 2007
Elders Rural Bank BBB August 2007
HSBC Bank Australia AA August 2006
ING Bank (Australia) AA August 2005
Macquarie Bank A November 1994
National Australia Bank AA February 2007
St George Bank A+ January 2006
Suncorp-Metway A+ March 2007
Westpac Banking Corporation AA February 2007
Table 5: Assets under Management
Consolidated, June 2007
Level
$b
Share of total
Per cent
Year-ended growth
Per cent
(a) Includes superannuation funds held in the statutory funds of life insurers.
(b) Cash management trusts, common funds and friendly societies.
(c) Superannuation funds plus an estimate of the superannuation assets held in the statutory funds of life insurers.
Sources: ABS; RBA
Superannuation funds 780.7 58.5 28.0
Life insurers(a) 224.5 16.8 10.5
Public unit trusts 267.0 20.0 17.9
Other managed funds(b) 62.4 4.7 17.7
Total 1334.7 100.0 22.2
Memo: total superannuation assets(c) 972.6 72.9 24.4
Table 6: Household Assets
Per cent
  Share of total
March 2007
Year-ended growth
March 2006 March 2007
(a) Includes assets of unincorporated enterprises
(b) Includes unfunded superannuation
Sources: ABS; RBA
Non-financial assets 60.9 7.3 10.4
Dwellings 56.7 7.5 10.8
Consumer durables 4.2 4.5 5.0
Financial assets(a) 39.1 18.0 12.9
Superannuation and life offices(b) 21.8 20.4 15.3
Shares and other equities 7.6 21.9 13.5
Currency and deposits 7.8 9.2 10.3
Other 1.8 17.7 -3.8
Total 100.0 11.2 11.3
Table 7: House Prices
Percentage change
  Annual average,
two years to June quarter 2006
Year to June quarter 2007
Source: ABS
Sydney −1.8 3.0
Melbourne 5.2 11.5
Brisbane 3.4 15.7
Adelaide 5.4 11.7
Perth 27.2 15.3
Canberra 3.3 9.0
Hobart 7.5 9.7
Darwin 20.8 7.4
Australia 4.5 9.2
Table 8: Banks’ Business Lending
June 2007, by loan size
Loan size Level
$b
Share of total
Per cent
Year-ended growth
Per cent
Source: APRA
Less than $500,000 93.8 17.4 −0.5
$500,000 to $2 million 93.4 17.3 22.1
Greater than $2 million 352.1 65.3 31.0
Table 9: Banks’ Australian Commercial Property Exposures
March 2007, per cent
  Share of banks’
total business credit
Year-ended growth
Source: APRA
Office 7 27
Retail 4 8
Industrial 3 31
Residential 7 8
Tourism and leisure 2 54
Other 3 13
Total 27 18
Table A1: Collateral Underlying Outstanding ABCP
June 2007
  $ billion Per cent
of total
Source: Standard & Poor’s
Residential mortgages 32.9 45
of which:
Prime 32.1 44
Non-conforming 0.8 1
Residential mortgage-backed securities 12.3 17
of which:
Prime 11.6 16
Non-conforming 0.7 1
Auto/equipment loans & leases 4.8 7
Equities 4.2 6
Margin loans 4.0 6
Infrastructure bonds 3.9 5
Small business loans 2.1 3
Trade receivables 2.1 3
Commercial mortgage-backed securities 1.7 2
Collateralised debt obligations 1.4 2
Corporate bonds & loans 0.6 1
Credit card receivables 0.5 1
Other 2.0 3
Total 72.5 100