Australia

Details

  • Industry: Financial Services, Banking
  • Type: Survey report
  • Date: 10/05/2013

Major Banks Survey

Major Australian Banks Performance Survey
KPMG's annual Financial Institutions' Performance Survey includes coverage of the major Australian banks.

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.

Major Australian Banks Survey Half Year 2013 

Australia’s major banks (the majors) have posted profit growth for the 2012-2013 half year as they position for a continuing low growth, low interest rate environment. Their challenge is to explore growth opportunities at a time when revenue is flat, while simplifying their operating models, products and processes.
Major Australian Banks Survey Half Year 2013 cover
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The majors' posted cash profit after tax of $13.4 billion in H1 2013 compared to $12.5 billion in H2 2012 (an increase of 7.2 percent).

 

This represents another respectable profit result for the majors who will continue to be challenged by low revenue growth, margin pressure, the level of regulatory change, and investment required in response to digital innovation.

 

Key findings

  • Margins reduced from an average of 214 basis points in H2 2012 to 212 basis points in H1 2013, reflecting the increased cost of retail deposits and reduced returns on liquid asset holdings.
  • Overall decrease in the loan impairment charge from $3.2 billion in H2 2012 to $2.8 billion in H1 2013. Key credit quality indicators including new problem loans, consumer arrears and mortgage delinquency improved.
  • Disciplined approach to cost control as the cost to income ratio improved from 47.5 percent in H2 2012 to 44.7 percent in H1 2013.
  • Stronger markets results as the majors capitalised on flow business in foreign exchange and interest rate products.
  • Increased capital levels in response to the implementation of Basel III effective January 2013.


 

 

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Banking

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