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RESERVE BANK OF AUSTRALIA

Financial Stability Review – March 2009

List of tables

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Chapters

Table 1: Banks’ Latest Half year Profit Results

Table 2: Long-term Ratings of Australian Banks’

Table 3: Guaranteed Liabilities

Table 4: Financial Strength Ratings of Selected Large Insurers

Table 5: Funds under Management

Table 6: Superannuation Funds’ Assets

Table 7: Public Unit Trusts’ Assets

Table 8: RITS Throughput

Table 9: Real Household Disposable Income

Table 10: Housing Loan Arrears by Loan Characteristic

Boxes

Table A1: Fees on the Guarantee Scheme for Large Deposits and Wholesale Funding

Table A2: Changes in Selected Countries’ Deposit Guarantee Arrangements

Table 1: Banks’ Latest Half Year Profit Results(a)
Consolidated, five largest banks
  2007
$b
2008
$b
Per cent of
average assets(b)
(a) Half year to September for ANZ Banking Group, National Australia Bank, St George Bank and Westpac Banking Corporation; half year to December for Commonwealth Bank of Australia
(b) Annualised half-year results
Sources: Banks’ annual and interim reports
Income
Net interest income 16.9 19.5 1.8
Net income from wealth management 3.3 1.2 0.1
Other non-interest income 7.6 7.8 0.7
Expenses
Operating expenses 12.9 13.8 1.3
Bad and doubtful debts 1.4 5.3 0.5
Profit
Net profit before tax 13.6 9.4 0.9
Net profit after tax and minority interests 9.3 8.1 0.7
Table 2: Long-term Ratings of Australian Banks(a)
As at 24 March 2009
  Outlook Current Last change
Direction Date
(a) Includes all Australian-owned banks, and foreign-owned banks operating in Australia that have an issuer rating from Standard & Poor’s
Source: Standard & Poor’s
Adelaide Bank Stable BBB+ October 2004
AMP Bank Stable A April 2008
ANZ Banking Group Stable AA February 2007
Arab Bank Australia Stable A− -- January 2007
Bank of Queensland Stable BBB+ April 2005
BankWest Stable AA December 2008
Bendigo and Adelaide Bank Stable BBB+ February 2005
Citigroup Negative A+ December 2008
Commonwealth Bank of Australia Stable AA February 2007
Elders Rural Bank Negative BBB August 2007
HSBC Bank Australia Negative AA July 2006
ING Bank (Australia) Negative AA August 2005
Macquarie Bank Negative A -- November 1994
Members Equity Bank Negative BBB August 2006
National Australia Bank Stable AA February 2007
Rabobank Stable AAA August 1998
St George Bank Stable AA November 2008
Suncorp-Metway Stable A January 2009
Westpac Banking Corporation Stable AA February 2007
Table 3: Guaranteed Liabilities
  Daily average value(a) Value as at
Dec 08(b)
$b
Jan 09
$b
Feb 09
$b
24 Mar 09
$b
(a) Components may not add to the total due to rounding
(b) This includes 28–30 November, as the Deed of Guarantee became operative on 28 November
Source: Australian Government Guarantee Scheme Administrator
Deposits 18.1 19.2 19.3 --
Short-term wholesale 15.4 19.4 22.4 18.9
Long-term wholesale 8.6 35.9 60.4 81.2
Total 42.1 74.5 102.2 --
Memo: Fees paid ($m) 32.7 51.3 63.2 --
Table 4: Financial Strength Ratings of Selected Large Insurers
As at 24 March 2009
  Current Outlook
Source: Standard & Poor’s
Allianz Insurance Australia AA− Stable
Insurance Australia Group AA− Stable
QBE Insurance Australia A+ Stable
Suncorp-Metway Insurance A+ Stable
Table 5: Funds under Management
Consolidated, December 2008
  Level Share of total
$b
Six-month-
ended annualized
percentage change
Jun 2008
Per cent
Dec 2008
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 717.6 59.9 −7.2 −18.6
Life insurers(a) 164.9 13.8 −20.5 −18.7
Public unit trusts 255.4 21.3 −16.8 −14.1
Other managed funds(b) 59.3 5.0 4.7 −11.2
Total 1,197.20 100.0 −10.8 −17.4
Of which:
All superannuation assets(c) 852.0 71.2 −12.1 −18.7
Table 6: Superannuation Funds’ Assets
Unconsolidated(a), December 2008
  Level
$b
Share of total
Per cent
Six-month-ended annualised
percentage change
Jun-08
Per cent
Dec-08
Per cent
(a) Not adjusted for cross-investments with other managed fund sectors
(b) Includes non-financial assets
Source: ABS
Cash and deposits 154.9 17.8 14.7 19.9
Loans and placements 7.9 0.9 8.9 4
Short-term securities 37.7 4.3 3.9 −7.5
Long-term securities 48.2 5.5 −12.6 −16.5
Equities 238.9 27.5 −18.4 −38.1
Units in trusts 130.4 15 −19.1 −24.4
Other assets in Australia(b) 91.9 10.6 34.4 5.8
Assets overseas 158.6 18.3 −16.9 −22.8
Total 868.4 100.0 −9.2 −18.9
Table 7: Public Unit Trusts’ Assets
Unconsolidated(a), December 2008
  Six-month-ended annualised
percentage change
Level Share of total Jun 2008 Dec 2008
(a) Not adjusted for cross-investments with other managed fund sectors
Source: ABS
$b Per cent Per cent Per cent
Listed property trusts 125.8 44.4 −1.4 0.9
Listed equity trusts 51.4 18.2 −6.4 −5.5
Unlisted equity trusts 75.7 26.8 −37.0 −38.4
Other trusts 30.2 10.7 −15.9 −18.9
Total 283 100.0 −17.4 −15.6
Table 8: RITS Throughput
Time by which each percentage of total value is settled
25 per cent 50 per cent 75 per cent
Source: RBA
Jul 06 – Jul 07 12:00 14:45 16:15
Aug 07 – 12 Sep 08 11:45 14:30 16:00
15 Sep 08 – Oct 08 11:30 14:00 16:00
Nov 08 – Feb 09 11:45 14:00 15:45
Table 9: Real Household Disposable Income(a)
Year-ended percentage change
  Average  
  Dec 1980–Dec 1995 Dec 1995–Dec 2007 Dec 2008
(a) Excludes unincorporated enterprises
Sources: ABS; RBA
Real disposable income before interest 2.7 4.2 9.7
  Of which:
  Compensation of employees 2.2 4.0 3.7
  Government transfer payments 4.2 3.5 39.6
  Income tax and other payables 2.6 4.0 −3.1
Table 10: Housing Loan Arrears by Loan Characteristic(a)
Per cent of outstandings, January 2009
  Loan-to-valuation ratio at time of loan approval
Loan size 0 to 60 60 to 75 75 to 85 85 to 95 95 +
(a) Securitised loans 90+ days past due; includes self-securitisations; only loans reporting approval LVR are included
Sources: Perpetual; RBA
Less than $250,000 0.1 0.3 0.5 0.9 1.4
$250,000–$500,000 0.2 0.3 0.7 1.4 1.7
More than $500,000 0.4 0.9 1.7 2.5 n.a.
Table A1: Fees on the Guarantee Scheme for Large Deposits and Wholesale Funding
Credit Rating Fee per annum
Source: Australian Government Guarantee Scheme Administrator
AAA to AA− 70 basis points (0.7 per cent)
A+ to A− 100 basis points (1.0 per cent)
BBB+ and below and Unrated 150 basis points (1.5 per cent)
Table A2: Changes in Selected Countries’ Deposit Guarantee Arrangements
Previous Limit Current Limit Termination Date
Source: BIS
Australia Unlimited: first $1 million is
free, then voluntary access
via Guarantee Scheme
11 October 2011
Austria €20,000 Unlimited 31 December 2009
Belgium €20,000 €100,000  
Denmark DKK300,000 Unlimited 30 September 2010
Finland €25,000 €50,000  
Germany €20,000 Unlimited  
Greece €20,000 €100,000 8 October 2011
Hong Kong HKD100,000 Unlimited 31 December 2010
Ireland €20,000 Unlimited 30 September 2010
Netherlands €38,000 €100,000  
New Zealand NZ$1 million 12 October 2010
Singapore SGD20,000 Unlimited 31 December 2010
Spain €20,000 €100,000  
Sweden SEK250,000 SEK500,000  
Switzerland CHF30,000 CHF100,000  
United Kingdom £31,700 £50,000  
United States US$100,000 US$250,000 31 December 2009