Bank profits power ahead

ScreenHunter_06 Jun. 26 22.42

By Martin North, cross-posted from the Digital Finance Analytics Blog

Today APRA released its quarterly authorised deposit-taking institution (ADI) statistics for December 2013. They report, “over the year ending 31 December 2013, ADIs recorded net profit after tax of $31.0 billion. This is an increase of $6.1 billion (24.4 per cent) on the year ending 31 December 2012. ADIs’ total domestic housing loans were $1.17 trillion, an increase of $85.5 billion (7.9 per cent) over the year. There were 4.93 million housing loans outstanding with an average balance of $234,000.”

Looking at the asset and liability lines, housing lending growth is growing slower than total asset growth. Terms deposits are growing slower than total deposits.

ADIDec

In addition APRA reports “as at 31 December 2013, the total assets of ADIs were $3.96 trillion, an increase of $314.6 billion (8.6 per cent) over the year. At 31 December 2013, the total capital base of ADIs was $197.5 billion and risk-weighted assets were $1.66 trillion.

The capital adequacy ratio for all ADIs was 11.9 per cent.

Impaired assets and past due items were $34.2 billion, a decrease of $4.7 billion (12.1 per cent) over the year. Total provisions were $21.2 billion, a decrease of $4.6 billion (17.8 per cent) over the year.

ADIs’ commercial property exposures were $219.8 billion, an increase of $10.7 billion (5.1 per cent) over the year. Commercial property exposures within Australia were $178.8 billion, equivalent to 81.3 per cent of all commercial property exposures.”

Leith van Onselen

Comments

  1. “There were 4.93 million housing loans outstanding with an average balance of $234,000.”

    $5.2 trillion dollar mortgage debt

    “total domestic housing loans were $1.17 trillion”

    5.2-1.7= $3.5b?

    • interested partyMEMBER

      collateralized mortgage backed securities maybe…..on-sold to muppets no doubt…….and probably with a hidden short position against the deal, if history repeats.

  2. I think we need a new theory of the economic cycle that predicts economic crisis following boom times based not just on the level of “malinvestment” as the Austrian economists have it, but on the level of zero-sum economic rent sucked out of the system by unproductive finance and property capitalists.

  3. “Looking at the asset and liability lines, housing lending growth is growing slower than total asset growth.”

    Now isn’t that interesting? The rest of the asset growth being plugged by the Chinese mega credit machine perhaps?