This newsletter contains the latest available information regarding key performance metrics in the Australian Banking sector. Whilst these are the latest, they are still published 1-2 months after the month they relate to.
INFLATION
Inflation is one of the most watched metrics right now as underlying inflation is above the RBA target rate of 2-3% and is the primary reason that interest rates have been rising over the past 2+ years. underlying inflation would probably need to fall below 2% for the RBA to consider cutting rates.
What Does Inflation Measure?
Inflation measures the rate at which the general level of prices for goods and services in an economy rises over a period of time. It reflects the decrease in purchasing power of a currency, as consumers are able to buy fewer goods and services with the same amount of money. Ideally inflation should be positive but ideally only around 2.5%.
RBA CASHRATE
The RBA (Reserve Bank of Australia) cash rate is the interest rate at which Australian banks borrow and lend money to each other on an overnight basis. It is a key tool used by the RBA to influence the broader economy, particularly inflation and economic growth. Changes in the cash rate affect interest rates on loans and savings, impacting consumer spending, investment, and the overall cost of borrowing. The RBA adjusts the cash rate based on economic conditions to maintain stability and control inflation within its target range.
RETAIL TURNOVER
Retail turnover measures the total sales of goods and services by retail businesses each month. It reflects consumer spending and is an important indicator of economic activity, providing insights into the health of the retail sector and broader economy. Higher retail sales are usually expected in Nov-Dec due to the x-mas period.
UNEMPLOYMENT RATE
The unemployment rate measures the percentage of people in the labour force who are actively seeking work but are unable to find unemployment. It is a key indicator of labour market health and economic performance. The labour force includes people who are either employed or actively looking for work.
What Does the Unemployment Rate Reflect?
A lower unemployment rate generally indicates a healthier economy, as more people are employed and earning income. However, the unemployment rate does not include individuals who are not actively searching for jobs, such as students, retirees, or discouraged workers.
Economists typically consider an unemployment rate between 3-5% to be indicative of full employment, though this range can vary depending on economic conditions in Australia.
HOME LOAN MARKET SHARE
This table shows the entire Home Loan Market based on APRA data. It shows the breakdown in balances and market share across the top 9 banks but also the total of the remaining ~120 banks in the Australian Market.
Current Month – None of the main banks gained market share over the last month, but Macquarie gained the most material share (+4 bps).
Past Year – The main banks that gained market share over the past year was CBA (+13 bps) and ANZ (+6 bps). Macquarie (+53 bps) gained the most material share, followed by Bendigo & Adelaide (+12 bps) and ING (+7 bps).
BIGGEST HOME LOAN INCREASES AND DECREASES
These tables show the banks which have gained and lost the most amount of balances this month.
DEPOSIT MARKET SHARE
This table shows the entire Deposit Market based on APRA data. It shows the breakdown in balances and market share across the top 9 banks but also the total of the remaining ~120 banks in the Australian Market.
Current Month – Westpac (+5 bps) was the only major bank to gain market share, but Macquarie gained the most material share (+7 bps).
Past Year – Westpac gained (+8 bps)being the only major bank to gain market share for over the past 12 months, with Macquarie gaining (+73 bps). The remaining smaller banks have lost market share over the past 12 months.
BIGGEST DEPOSIT INCREASES AND DECREASES
These tables show the banks which have gained and lost the most amount of balances this month.
BUSINESS LOAN MARKET SHARE
This table shows the entire Business Loan Market based on APRA data. It shows the breakdown in balances and market share across the top 9 banks but also the total of the remaining ~120 banks in the Australian Market.
Current Month – CBA (+10 bps) was the only major bank to gain share. ING and BOQ both gained (+1 bps) and the only winner of the non-big 4 group.
Past Year – CBA (+47 bps) and Westpac (+63 bps) saw the largest share increase over the past 12 months, whereas NAB (- 31bps) and ANZ (-41 bps). All non-big 4 group lost or maintained its market share.
BIGGEST BUSINESS LOAN INCREASES AND DECREASES
These tables show the banks which have gained and lost the most amount of balances this month.
TOTAL MARKET CREDIT CARD SPEND
This chart shows the total spending each month on credit cards. It reflects consumer confidence, economic health, seasonal spending trends, and also general use of the credit card product. Higher spending highlights a higher reliance on credit for purchases, however this spending does not always translate into interest bearing balances if consumers pay their cards off quickly.
TOTAL MARKET CREDIT CARD ACCOUNTS
This chart shows the total number of credit card accounts outstanding in the market. A reporting change in the APRA data this month by a bank and a non-bank decreased the number of personal credit card accounts, however this has still be trending downwards as it looks like customers once again shift away from Credit Cards.
TOTAL MARKET CREDIT CARD BALANCES
This chart shows the total borrowing amount owing on credit card cards each month. There is usually a strong correlation between this chart and the amount of spending each month. Some lenders have reduced interest free days which is causing a reduction in balances too. The volatile nature of the data suggests that there may be data issues at the moment.
TOTAL MARKET CREDIT CARD LIMITS
Total market credit card limits show the maximum amount of credit available to consumers across all (business and personal) credit cards in the market. A reporting change in the APRA data in Jun-24 decreased the number of personal credit card accounts.
TOTAL MARKET CREDIT CARD REVOLVE RATE
The credit card revolve rate shows the percentage of credit card balances that are accruing interest. It reflects how many cardholders are not paying their balances in full each month and are instead incurring interest on their unpaid balances. A higher revolve rate indicates more consumers are relying on credit and accruing interest, while a lower rate suggests more consumers are paying off their balances in full. This has been trending down over time (last few years) in Australia, but has been increasing in the past 12 months.
CREDIT CARD MARKET SHARE
This table shows the entire Credit Card Market based on APRA data. It shows the breakdown in balances and market share across the top 9 banks but also the total of the remaining ~120 banks in the Australian Market (although most banks do not offer credit cards).
Current Month – ANZ (+8 bps) was the only major bank to gain share. ING and Bendigo both gained (+1 bps).
Past Year – NAB is the largest taker of share (+134 bps) followed by Westpac (+67 bps) of market share over the same period. ING gained (+13 bps) and Bendigo gained (+1 bps) market share. Partially driven by the reduction in interest free days offered.
BIGGEST CREDIT CARD INCREASES AND DECREASES
These tables show the banks which have gained and lost the most amount of balances this month.
TOTAL MARKET DEBIT CARD SPEND
This chart shows the total spending each month on debit cards. It reflects consumer confidence, economic health, seasonal spending trends, and also general use of the debit product. Higher spending highlights a higher use of cash (not credit) for purchases.
TOTAL MARKET DEBIT CARD ACCOUNTS
This chart shows the total number of debit card accounts outstanding in the market. The use of debit cards has been increasing over time as customers move increasingly away from cash, EFTPOS, and credit. The number of accounts/cards per customer is also increasing.
ATM WITHDRAWALS
The amount of ATM withdrawals in the market shows the remaining use of cash withdrawals. Whilst this is trending downwards over time as we shift towards digital payment methods, there were still 8.6 billion AUD of withdrawals this month.
ATM WITHDRAWAL SIZE
This chart shows the average size of an ATM withdrawal. Whilst total withdrawals are broadly remaining constant (small increase for inflation), the average amount of withdrawal is slowly increasing.
CHEQUE USE
Whilst most of us don’t use cheques they still remain transaction method exceeding $12.43 billion in the month of January 2025. Most of these are either Bank Cheques or Commercial Cheques. Personal Cheques account for about 10% of this value.
COMMENTS, QUESTIONS, OR SUGGESTIONS
We prepare this information so people who have an interest in staying up to data on the latest Australian Banking trends can do so without significant effort. We are however only human and if we have made a mistake or you’d like to see something else reported here, please get in touch and let us know.
Australian Prudential Regulation Authority (APRA), “Monthly Authorised Deposit-taking Institution Statistics”, January 2025
The Reserve Bank of Australia (RBA), “Payments Data”, January 2025
The Reserve Bank of Australia (RBA), “Interest Rates”, January 2025
Australian Bureau of Statistics (ABS), “Monthly Consumer Price Index Indicator”, January 2025
Australian Bureau of Statistics (ABS), “Consumer Price Index, Australia”, January 2025
Australian Bureau of Statistics (ABS), “Labour Force, Australia”, January 2025
Australian Bureau of Statistics (ABS), “Retail Trade, Australia”, January 2025
