Australian Banking Trends November 2024

A Newsletter containing the latest available information regarding key performance metrics in the Australian Banking Sector

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%

Source: Australian Bureau of Statistics (ABS), “Consumer Price Index, Australia”, November 2024

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.

Source: The Reserve Bank of Australia (RBA), “Interest Rates”, November 2024

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.

Source: Australian Bureau of Statistics (ABS), “Retail Trade, Australia”, November 2024

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.

Source: Australian Bureau of Statistics (ABS), “Labour Force, Australia”, November 2024

NEW HOME LOANS

Note: **The ABS has not updated data since September 2024.**

Total New Home Loan Commitments (HLC) measures how much new demand there currently is for home loans, which is a big part of the growth in lending assets for most Australian Banks.

Source: Australian Bureau of Statistics (ABS), “Lending Indicators”, November 2024

NEW HOME LOANS – OWNER OCCUPIER

This is the portion of Total New Home Loan Commitments (HLC) used by borrowers to finance the property which they live in.

Source: Australian Bureau of Statistics (ABS), “Lending Indicators”, November 2024

NEW HOME LOANS – INVESTORS

This is the portion of Total New Home Loan Commitments (HLC) used by borrowers to finance the property which they do not live in e.g Investment Properties.

This is the portion of Total New Home Loan Commitments (HLC) used by borrowers to finance investment properties.

Source: Australian Bureau of Statistics (ABS), “Lending Indicators”, November 2024

NEW PERSONAL FIXED-TERM LOANS

New Personal Fixed-Term loan Commitments provide insights into trends in personal lending and borrowing behaviour.

New Personal Fixed-Term Loans Commitments indicate trends in personal lending and borrowing behaviour.

Source: Australian Bureau of Statistics (ABS), “Lending Indicators”, November 2024

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 MonthCBA (+1bps) was the only major bank to gain share, but Macquarie gained the most material share (+6bps).

Past Year – Westpac (-29bps) and NAB (-32bps) saw the largest losses share over the past 12 months, whereas Macquarie (+46bps) and ANZ (+14bps) gained the most.

Source: Australian Prudential Regulation Authority (APRA), “Monthly Authorised Deposit-taking Institution Statistic”, November 2024

BIGGEST HOME LOAN INCREASES AND DECREASES

These tables show the banks which have gained and lost the most amount of balances this month.

Source: Australian Prudential Regulation Authority (APRA), “Monthly Authorised Deposit-taking Institution Statistics”, November 2024

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 MonthMacquarie (+10bps) was the only major bank to materially gain market share.

Past Year – CBA (-38bps) and NAB (-18bps) have lost the most share over the past 12 months, with Macquarie gaining (+63 bps). The remaining smaller banks have done well to attract market share, however many doing so simply using higher interest rates.

Source: Australian Prudential Regulation Authority (APRA), “Monthly Authorised Deposit-taking Institution Statistics”, November 2024

BIGGEST DEPOSIT INCREASES AND DECREASES

These tables show the banks which have gained and lost the most amount of balances this month.

Source: Australian Prudential Regulation Authority (APRA), “Monthly Authorised Deposit-taking Institution Statistics”, November 2024

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 – NAB lost share (-1bp) this month with other majors broadly holding steady. Macquarie (+2bps) was the only material gainer of the non-big 4 group.

Past Year – All majors (except ANZ and NAB) have been winning market share. Business banking seems to have renewed focus for the Banks as the home loan market growth outlook looks challenging.

Source: Australian Prudential Regulation Authority (APRA), “Monthly Authorised Deposit-taking Institution Statistics”, November 2024

BIGGEST BUSINESS LOAN INCREASES AND DECREASES

These tables show the banks which have gained and lost the most amount of balances this month.

Source: Australian Prudential Regulation Authority (APRA), “Monthly Authorised Deposit-taking Institution Statistics”, November 2024

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.

Source: The Reserve Bank of Australia (RBA), “Payments Data”, November 2024

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.

Source: The Reserve Bank of Australia (RBA), “Payments Data”, November 2024

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.

Source: The Reserve Bank of Australia (RBA), “Payments Data”, November 2024

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.

Source: The Reserve Bank of Australia (RBA), “Payments Data”, November 2024

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.

Source: The Reserve Bank of Australia (RBA), “Payments Data”, November 2024

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 MonthAll majors have won market share this month except ANZ losing -103bps

Past Year – NAB is the largest taker of share (+128bps) with CBA losing -112bps of share over the same period. Partially driven by the reduction in interest free days offered.

Source: Australian Prudential Regulation Authority (APRA), “Monthly Authorised Deposit-taking Institution Statistics”, November 2024

BIGGEST CREDIT CARD INCREASES AND DECREASES

These tables show the banks which have gained and lost the most amount of balances this month.

Source; Authorised Prudential Regulation Authority (APRA), “Monthly Authorised Deposit-taking Institution Statistics”, November 2024

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.

Source: The Reserve Bank of Australia (RBA), “Payments Data”, November 2024

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.

Source: The Reserve Bank of Australia (RBA), “Payments Data”, November 2024

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 9.2 billion AUD of withdrawals this month.

Source: The Reserve Bank of Australia (RBA), “Payments Data”, November 2024

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.

Source: The Reserve Bank of Australia (RBA), “Payments Data”, November 2024

CHEQUE USE

Whilst most of us don’t use cheques they still remain transaction method exceeding $15.4 billion in the month of November 2024. Most of these are either Bank Cheques or Commercial Cheques. Personal Cheques account for about 10% of this value.

Source: The Reserve Bank of Australia (RBA), “Payments Data”, November 2024

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.

Completed Sources List:

Australian Prudential Regulation Authority (APRA), “Monthly Authorised Deposit-taking Institution Statistics”, November 2024

The Reserve Bank of Australia (RBA), “Payments Data”, November 2024

The Reserve Bank of Australia (RBA), “Interest Rates”, November 2024

Australian Bureau of Statistics (ABS), “Lending Indicators”, November 2024

Australian Bureau of Statistics (ABS), “Monthly Consumer Price Index Indicator”, November 2024

Australian Bureau of Statistics (ABS), “Consumer Price Index, Australia”, November 2024

Australian Bureau of Statistics (ABS), “Labour Force, Australia”, November 2024

Australian Bureau of Statistics (ABS), “Retail Trade, Australia”, November 2024

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