Australia

Details

  • Industry: Financial Services, Banking
  • Type: Survey report
  • Date: 15/11/2011

Regional Banks Survey

Regional Banks Survey
KPMG's Regional Banks Surveys from 2007-2011. The survey was discontinued in 2012 as bank analysis is included in the Major Banks and Mutuals Survey.

Financial Institutions Performance Survey

Financial Institutions Performance Survey
KPMG's survey of financial institutions offers a detailed, authoritative review of performance and trends across key sectors of banking and finance.

Regional Banks Survey 2011 

Australia’s regional banks (the Regionals) have come through a challenging year and continue to provide a viable alternative to the major banks, according to KPMG’s Regional Banks: 2011 Financial Institutions Performance Survey. 
Regional Banks Survey cover
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The Regionals have experienced continued competition from the major banks in 2011. Despite this, they have managed to increase profit before tax by 16.1 percent, with three of the four banks recording growth in profits. However returns on equity remain low – posing a challenge for the sector.

 

Key Insights

  • Market share has been strong and margins remained tight, rising just three basis points to 1.64 percent.
  • Return on equity for the sector of 6.75 percent. Strongest performers were Bendigo and Adelaide Banks (return on equity of 9 percent).
  • Increased profits due to lower bad and doubtful debt expense. A positive result given the impact of the extreme weather events in Queensland and Victoria.
  • Competitive cost to income ratios. Across the sector the cost to income ratio averaged 52.2 percent, reflecting well-managed institutions.
  • A major challenge for the Regionals is how to access funding at a competitive prices in wholesale markets.

 

 

Banking

KPMG’s banking practice in Australia is well placed to help clients successfully navigate challenging times and capitalise on opportunities.