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 inflation is above the RBA target rate of 2-3% and is the primary reason interest rates have been rising over the past 2+ years.
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”, October 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”, October 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 the broader economy.
Source: Australian Bureau of Statistics (ABS), “Retail Trade, Australia”, October 2024
UNEMPLOYMENT RATE
The unemployment rate measures the percentage of people in the labor force who are actively seeking work but are unable to find employment. It is a key indicator of labor market health and economic performance. The labor force includes people who are either employed or actively looking for work, and the unemployment rate helps assess the balance between job availability and the number of individuals looking for jobs.
Source: Australian Bureau of Statistics (ABS), “Labour Force, Australia”, October 2024
NEW HOME LOANS
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”, October 2024
NEW HOME LOANS – OWNER OCCUPIER
This is the portion of Total New Home Loan Commitments (HLC) used by borrowers to finance the property in which they live.
Source: Australian Bureau of Statistics (ABS), “Lending Indicators”, October 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.
Source: Australian Bureau of Statistics (ABS), “Lending Indicators”, October 2024
NEW PERSONAL FIXED-TERM LOANS
New Personal Fixed-Term Loans Commitments indicate trends in personal lending and borrowing behaviour.
Source: Australian Bureau of Statistics (ABS), “Lending Indicators”, October 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 Month – Westpac have lost the most share this month, with Macquarie and CBA gaining the most. This was the same observation last month.
Past Year – Westpac(-23bps) and NAB (-32bps) have lost the most share over the past 12 months, with Macquarie gaining 44 bps and ANZ gaining 15 bps.
Source: Australian Prudential Regulation Authority (APRA), “Monthly Authorised Deposit-taking Institution Statistics”, October 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”, October 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 Month – All majors except CBA have gained market share this month which is the opposite of last month.
Past Year – NAB (-17bps) and CBA (-28bps) have lost the most share over the past 12 months, with Macquarie gaining +58 bps. The remaining smaller banks have done well to atrract market share, however many doing so simply using higher interest rates.
Source: Australian Prudential Regulation Authority (APRA), “Monthly Authorised Deposit-taking Institution Statistics”, October 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”, October 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 this month with other majors broadly holding steady.
Past Year – All majors (except ANZ) 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”, October 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”, October 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”, October 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.
Source: The Reserve Bank of Australia (RBA), “Payments Data”, October 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.
Source: The Reserve Bank of Australia (RBA), “Payments Data”, October 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 this month by a bank and a non-bank decreased the number of personal credit card accounts.
Source: The Reserve Bank of Australia (RBA), “Payments Data”, October 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 in Australia.
Source: The Reserve Bank of Australia (RBA), “Payments Data”, October 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 Month – CBA and NAB have won market share this month with Westpac and ANZ losing 13bps and 14bps respectively this month.
Past Year – NAB is the largest taker of share (+115bps) with CBA losing 142bps of share over the same period. Partially driven by the reduction in interest free days offerred.
Source: Australian Prudential Regulation Authority (APRA), “Monthly Authorised Deposit-taking Institution Statistics”, October 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: Australian Prudential Regulation Authority (APRA), “Monthly Authorised Deposit-taking Institution Statistics”, October 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”, October 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”, October 2024
ATM WITHDRAWALS
The amount of ATM withdrawals in the market shows the remaining use of cash withdrawals. Whislt this is trending downwards over time as we shift towards digital payment methods, there were still 9.3 billion AUD of withdrawals this month.
Source: The Reserve Bank of Australia (RBA), “Payments Data”, October 2024
ATM WITHDRAWAL SIZE
This chart shows the average size of an ATM withdrawal. Whilst total withdrawals are decreasing over time, the average amount of withdrawal is slowly increasing.
Source: The Reserve Bank of Australia (RBA), “Payments Data”, October 2024
CHEQUE USE
Whilst most of us don’t use cheques they still remain transaction method exceeding $15 billion in the month of September 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”, October 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.
Complete Sources List :
Australian Prudential Regulation Authority (APRA), “Monthly Authorised Deposit-taking Institution Statistics”, October 2024
The Reserve Bank of Australia (RBA), “Payments Data”, October 2024
The Reserve Bank of Australia (RBA), “Interest Rates”, October 2024
Australian Bureau of Statistics (ABS), “Lending Indicators”, October 2024
Australian Bureau of Statistics (ABS), “Monthly Consumer Price Index Indicator”, October 2024
Australian Bureau of Statistics (ABS), “Consumer Price Index, Australia”, October 2024
Australian Bureau of Statistics (ABS), “Labour Force, Australia”, October 2024
Australian Bureau of Statistics (ABS), “Retail Trade, Australia”, October 2024
