Financial Stability Review – March 2010
List of tables
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Chapters
Table 1: Foreign Bank Claims on Euro Area Countries
Table 2: Announced Final Date for Guaranteed Issuance
Table 3: Major Banks’ Latest Half Year Profit Results
Table 4: Australian-owned Banks’ Claims on Europe
Table 5: Long-term Credit Ratings of Banks operating in Australia
Table 6: Financial Strength Ratings of Large Insurers
Table 7: Domestic Funds under Management
Boxes
Table B1: Foreign Currency Exposure and Hedging Practices of Australian Banks
| Reporting banks (by headquarter location) |
Greece | Ireland | Italy | Portugal | Spain | Subtotal | Euro area |
|---|---|---|---|---|---|---|---|
|
(a) Based on 24 countries reporting to the BIS
(b) Monetary financial institutions used as a proxy for total bank assets for countries in the euro area Sources: BIS; RBA; Thomson Reuters; central banks |
|||||||
| Euro area banks | 0.4 | 0.8 | 2.1 | 0.5 | 1.5 | 5.3 | 12.4 |
| of which: | |||||||
| German | 0.4 | 1.8 | 1.9 | 0.4 | 2.2 | 6.7 | 13.4 |
| French | 0.7 | 0.6 | 4.3 | 0.3 | 1.6 | 7.6 | 13.8 |
| Dutch | 0.4 | 1.0 | 2.3 | 0.4 | 3.9 | 8.0 | 22.6 |
| Belgian | 0.5 | 2.5 | 3.1 | 0.7 | 2.8 | 9.5 | 27.0 |
| Spanish | 0.0 | 0.3 | 1.0 | 1.7 | – | 3.1 | 6.2 |
| Portuguese | 1.4 | 0.7 | 0.8 | – | 4.1 | 6.9 | 11.7 |
| Swiss banks | 2.6 | 0.6 | 0.9 | 0.1 | 0.6 | 4.9 | 16.2 |
| UK banks | 0.1 | 1.8 | 0.8 | 0.2 | 1.1 | 4.0 | 10.2 |
| US banks | 0.1 | 0.4 | 0.4 | 0.0 | 0.4 | 1.3 | 4.3 |
| Japanese banks | 0.1 | 0.2 | 0.6 | 0.0 | 0.3 | 1.2 | 5.6 |
| Australian banks | 0.0 | 0.1 | 0.5 | 0.0 | 0.1 | 0.7 | 2.2 |
| Country | Date |
|---|---|
|
(a) Selected countries.
(b) Legislation for schemes in Denmark and Germany set until 31 December 2010 and in Ireland until 29 September 2010, but EC approval required for further extensions every six months. (c) Exact final date unconfirmed. Sources: BIS; central banks; debt management offices and guarantee administrators; treasury departments. |
|
| United States | 31-Oct-09 |
| Canada | 31-Dec-09 |
| France | 31-Dec-09 |
| Korea | 31-Dec-09 |
| United Kingdom | 28-Feb-10 |
| Australia | 31-Mar-10 |
| New Zealand | 30-Apr-10 |
| Sweden | 30-Apr-10 |
| Ireland(b) | 01-Jun-10 |
| Denmark(b) | 30-Jun-10 |
| Finland | 30-Jun-10 |
| Germany(b) | 30-Jun-10 |
| Netherlands | 30-Jun-10 |
| Spain(c) | Jun-10 |
| Belgium | 31-Oct-10 |
| 2008 $ billion |
2009 $ billion |
Change $ billion |
|
|---|---|---|---|
| (a) Half year to
September for ANZ Banking Group, National Australia
Bank and Westpac Banking Corporation; half year
to December for Commonwealth Bank of Australia.
Includes St George Bank and Bankwest.
Sources: RBA; banks’ annual and interim reports |
|||
| Income | |||
| Net interest income | 20.0 | 23.4 | 3.4 |
| Non-interest income | 9.2 | 9.6 | 0.4 |
| Expenses | |||
| Operating expenses | 14.3 | 15.4 | 1.1 |
| Bad and doubtful debts | 5.7 | 6.7 | 1.0 |
| Profit | |||
| Net profit before tax | 9.2 | 10.9 | 1.7 |
| Net profit after tax and minority interests | 7.5 | 5.6 | −1.8 |
| Total $ billion |
|
|---|---|
| Source: APRA | |
| France | 11.5 |
| Greece | 0.0 |
| Germany | 11.0 |
| Ireland | 4.1 |
| Italy | 12.9 |
| Netherlands | 7.7 |
| Portugal | 0.5 |
| Spain | 3.0 |
| Other countries | 5.7 |
| Euro area | 56.4 |
| Current | Outlook | 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
(b) St George Bank has been subsumed by Westpac Banking Corporation and no longer has a separate banking licence or credit rating Source: Standard & Poor’s |
||||
| AMP Bank | A | Stable | + | April 2008 |
| ANZ Banking Group | AA | Stable | + | February 2007 |
| Arab Bank Australia | A− | Stable | n.a. | January 2007 |
| Bank of Queensland | BBB+ | Stable | + | April 2005 |
| Bankwest | AA | Stable | + | December 2008 |
| Bendigo and Adelaide Bank | BBB+ | Stable | + | February 2005 |
| Citigroup | A+ | Negative | − | December 2008 |
| Commonwealth Bank of Australia | AA | Stable | + | February 2007 |
| HSBC Bank Australia | AA | Negative | + | July 2006 |
| ING Bank (Australia) | A+ | Stable | − | September 2009 |
| Macquarie Bank | A | Stable | n.a. | November 2094 |
| Members Equity Bank | BBB | Stable | + | August 2006 |
| National Australia Bank | AA | Stable | + | February 2007 |
| Rabobank | AAA | Negative | + | August 1998 |
| Rural Bank | BBB | Stable | + | August 2007 |
| Suncorp-Metway | A | Stable | − | January 2009 |
| Westpac Banking Corporation(b) | AA | Stable | + | February 2007 |
| Current | Outlook | |
|---|---|---|
| Source: Standard & Poor’s | ||
| Allianz Australia Insurance | AA− | Stable |
| Insurance Australia Group | AA− | Stable |
| QBE Insurance Australia | A+ | Stable |
| Suncorp-Metway Insurance | A+ | Stable |
|
Six-month-ended
annualised change |
||||
|---|---|---|---|---|
| Level $billion |
Share of total Per cent |
Jun 09 Per cent |
Dec 09 Per cent |
|
|
(a) Excluding funds
sourced from overseas, government, other trusts,
general insurance and ‘other’ sources
(b) Includes non-financial assets (c) Includes superannuation funds held in the statutory funds of life insurers (d) Cash management trusts, common funds and friendly societies (e) Superannuation funds plus an estimate of the superannuation assets held in the statutory funds of life insurers Sources: ABS; RBA |
||||
| Superannuation funds (consolidated) |
846.2 | 63.4 | 10.9 | 31.6 |
| Superannuation funds (unconsolidated) |
1,019.7 | 12.6 | 31.1 | |
| of which: | ||||
| Cash and deposits | 161.7 | 15.8 | 21.7 | 1.2 |
| Loans and placements | 9.8 | 1.0 | 14.8 | 28.9 |
| Short-term securities | 52.9 | 5.2 | 21.3 | 43.9 |
| Long-term securities | 56.0 | 5.5 | 1.8 | 34.0 |
| Equities | 323.0 | 31.7 | 25.8 | 55.3 |
| Units in trusts | 152.1 | 14.9 | 20.7 | 33.4 |
| Other assets in Australia(b) | 97.8 | 9.6 | 15.7 | 9.6 |
| Assets overseas | 166.4 | 16.3 | −18.3 | 32.7 |
| Life insurers(c) (consolidated) |
182.0 | 13.6 | −2.7 | 25.0 |
| Public unit trusts (consolidated) |
259.4 | 19.4 | −5.1 | 8.3 |
| Public unit trusts (unconsolidated) |
296.5 | −4.9 | 15.0 | |
| of which: | ||||
| Listed property trusts | 122.6 | 41.4 | −4.1 | −0.4 |
| Listed equity trusts | 46.3 | 15.6 | −10.3 | −10.9 |
| Unlisted equity trusts | 99.3 | 33.5 | −1.1 | 70.5 |
| Other trusts | 28.3 | 9.5 | −8.2 | −1.8 |
| Other managed funds(d) (consolidated) |
47.9 | 3.6 | −14.2 | −23.0 |
| Total (consolidated) |
1,335.5 | 100.0 | 4.1 | 22.9 |
| of which: | ||||
| All superannuation assets(e) | 1,008.8 | 75.5 | 8.7 | 31.0 |
| 2005 | 2009 | |
|---|---|---|
| (a) A negative number
denotes a net foreign currency liability position
Source: ABS; RBA |
||
| Debt | ||
| Net foreign currency exposure | −186 | −339 |
| Derivatives | 168 | 414 |
| Open foreign currency debt position | −18 | 75 |
| Equity | ||
| Net foreign currency exposure | 33 | 23 |
| Derivatives | −10 | −5 |
| Open foreign currency equity position | 23 | 18 |
| Open foreign currency position debt & equity | 5 | 92 |
| Residual derivatives | −5 | −54 |
| Net foreign currency position | 1 | 38 |
| Per cent of assets | 0.1 | 1.6 |
