Eight signs major banks are becoming more profitable

Eight signs major banks are becoming more profitable
Eight signs major banks are becoming more profitable

Australia’s big four banks are more profitable and more liquid then they were a year ago, according to the latest banking figures from prudential regulator APRA.

Between September 2010 and September 2011 the combined profit margins of NAB, Commonwealth Bank, Westpac and ANZ have improved from 31% to 35%, the figures show. The major banks' lending books combined are now worth $1.11 trillion, and they added $72 billion worth of new loans in the 12 months to September 2011.

Over the same period the major banks’ ratio of net loans to deposits has fallen from 120% to 115.6% as the bank sector deleverages and improves its cash holdings in line with new global banking requirements. 

Key numbers as of September 2011:

The combined mortgage lending books of the major four banks

 


 

The combined mortgage books of all 56 Australian banks

 


 

Major banks’ share of Australian home lending as of September 2011

 


 

 

The total new mortgage lending of the major banks over the 12 months to September 2011

The total mortgage lending of all banks over the 12 months to September 2011

 


 

Major banks’ share of new home lending over the 12 months to September 2011

 


 

Growth in mortgage books of major banks over this period

 


 

Home loans as a percentage of all lending down by the banking sector

 

 

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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