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Australia Commercial Banking Report Q3 2012

Published : 
No. of Pages : 68
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Since Q108, we have described numerically the banking business environment for each of the countries surveyed by BMI. We do this through our Commercial Banking Business Environment Rating (CBBER), a measure that ensures we capture the latest quantitative information available.
It also ensures consistency across all countries and between the inputs to the CBBER and the Insurance Business Environment Rating, which is likewise now a feature of our insurance reports. Like the Business Environment Ratings calculated by BMI for all the other industries on which it reports, the CBBER takes into account the limits of potential returns and the risks to the realisation of those returns. It is weighted 70% to the former and 30% to the latter. The evaluation of the ‘Limits of potential returns’ includes market elements that are specific to the banking industry of the country in question and elements that relate to that country in general. Within the 70% of the CBBER that takes into account the ‘Limits of potential returns’, the market elements have a 60% weighting and the country elements have a 40% weighting.
The evaluation of the ‘Risks to realisation of returns’ also includes banking elements and country elements (specifically, BMI’s assessment of long-term country risk). However, within the 30% of the CBBER that take into account the risks, these elements are weighted 40% and 60%, respectively. Further details on how we calculate the CBBER are provided at the end of this report. In general, though, three aspects need to be borne in mind in interpreting the CBBERs. The first is that the market elements of the ‘Limits of potential returns’ are by far the most heavily weighted of the four elements. They account for 60% of 70% (or 42%) of the overall CBBER. Second, if the market elements are significantly higher than the country elements of the ‘Limits of potential returns’, it usually implies that the banking sector is (very) large and/or developed relative to the general wealth, stability and financial infrastructure in the country.
Conversely, if the market elements are significantly lower than the country elements, it usually means that the banking sector is small and/or underdeveloped relative to the general wealth, stability and financial infrastructure in the country. Third, within the ‘Risks to the realisation of returns’ category, the market elements (ie: how regulations affect the development of the sector, how regulations affect competition within it, and Moody’s Investor Services’ ratings for local currency deposits) can be markedly different from BMI’s long-term risk rating.

Executive Summary 5
Table: Levels (AUDbn) 5
Table: Levels (US$bn) . 5
Table: Levels At March 2012 5
Table: Annual Growth Rate Projections 2012-2016 (%) 6
Table: Ranking Out Of 59 Countries Reviewed In 2011 6
Table: Projected Levels (AUDbn) . 6
Table: Projected Levels (US$bn) 6
SWOT Analysis 7
Australia Commercial Banking SWOT 7
Australia Political SWOT . 8
Australia Economic SWOT 9
Australia Business Environment SWOT 10
Business Environment Outlook 11
Commercial Banking Business Environment Rating 11
Table: Commercial Banking Business Environment Ratings 11
Commercial Banking Business Environment Rating Methodology 12
Table: Developed States Commercial Banking Business Environment Ratings . 13
Global Commercial Banking Outlook 14
Regional Banking Sector Outlook 22
Developed States Banking Sector Forecast Overview – Q3 2012 . 22
Table: Banks'' Bond Portfolios 2011 22
Table: Developed States Commercial Banking Business Environment Ratings . 23
Table: Comparison of Loan/Deposit & Loan/Asset & Loan/GDP ratios 24
Table: Anticipated Developments in 2012. 25
Table: Comparison of Total Assets & Client Loans & Client Deposits (US$bn) 26
Table: Comparison of US$ Per Capita Deposits (2011) . 27
Table: Interbank Rates and Bond Yields 28
Australia Banking Sector Outlook 29
Economic Outlook 33
Table: Australia – Economic Activity, 2011-2016 36
Competitive Landscape 37
Market Structure 37
Protagonists . 37
Table: Protagonists In Australia''s Commercial Banking Sector 37
Definition Of The Commercial Banking Universe 37
List Of Banks 38
Table: Major Banks 38
Table: Other Domestic Banks . 38
Company Profiles 39
Bendigo and Adelaide Bank 39
Table: Stock Market Indicators 40
Table: Balance Sheet (AUDmn) 40
Table: Balance Sheet (US$mn) 41
Table: Key Ratios (%) 41
Bank of Queensland 42
Table: Stock Market Indicators 43
Table: Balance Sheet (AUDmn) 43
Table: Balance Sheet (US$mn) 44
Table: Key Ratios (%) 44
AMP Bank 45
Table: Stock Market Indicators 46
Table: Balance Sheet (AUDmn) 46
Table: Balance Sheet (US$mn) 46
Table: Key Ratios (%) 47
Westpac Banking Corporation 48
Table: Stock Market Indicators 49
Table: Balance Sheet (AUDmn) 49
Table: Balance Sheet (US$mn) 50
Table: Key Ratios (%) 50
National Australia Bank. 51
Table: Stock Market Indicators 52
Table: Balance Sheet (AUDmn) 52
Table: Balance Sheet (US$mn) 53
Table: Key Ratios (%) 53
Commonwealth Bank of Australia 54
Table: Stock Market Indicators 55
Table: Balance Sheet (AUDmn) 55
Table: Balance Sheet (US$mn) 56
Table: Key Ratios (%) 56
Australia and New Zealand Banking Group . 57
Table: Stock Market Indicators 58
Table: Balance Sheet (AUDmn) 58
Table: Balance Sheet (US$mn) 58
Table: Key Ratios (%) 59
BMI Banking Sector Methodology 60
Table: Commercial Banking Business Environment Indicators And Rationale 62
Table: Weighting Of Indicators 63
Demographic Forecast . 64
Table: Australia''s Population By Age Group, 1990-2020 (''000) 65
Table: Australia''s Population By Age Group, 1990-2020 (% of total) 66
Table: Australia''s Key Population Ratios, 1990-2020 67
Table: Australia''s Rural And Urban Population, 1990-2020 67Table: Levels (AUDbn) . 5


Table: Levels (US$bn) . 5


Table: Levels At March 2012 . 5


Table: Annual Growth Rate Projections 2012-2016 (%) . 6


Table: Ranking Out Of 59 Countries Reviewed In 2011 . 6


Table: Projected Levels (AUDbn) . 6


Table: Projected Levels (US$bn) . 6


Table: Commercial Banking Business Environment Ratings . 11


Table: Developed States Commercial Banking Business Environment Ratings . 13


Table: Banks'' Bond Portfolios 2011 . 22


Table: Developed States Commercial Banking Business Environment Ratings . 23


Table: Comparison of Loan/Deposit & Loan/Asset & Loan/GDP ratios . 24


Table: Anticipated Developments in 2012. 25


Table: Comparison of Total Assets & Client Loans & Client Deposits (US$bn) . 26


Table: Comparison of US$ Per Capita Deposits (2011) . 27


Table: Interbank Rates and Bond Yields . 28


Table: Australia – Economic Activity, 2011-2016. 36


Table: Protagonists In Australia''s Commercial Banking Sector . 37


Table: Major Banks . 38


Table: Other Domestic Banks . 38


Table: Stock Market Indicators . 40


Table: Balance Sheet (AUDmn) . 40


Table: Balance Sheet (US$mn) . 41


Table: Key Ratios (%) . 41


Table: Stock Market Indicators . 43


Table: Balance Sheet (AUDmn) . 43


Table: Balance Sheet (US$mn) . 44


Table: Key Ratios (%) . 44


Table: Stock Market Indicators . 46


Table: Balance Sheet (AUDmn) . 46


Table: Balance Sheet (US$mn) . 46


Table: Key Ratios (%) . 47


Table: Stock Market Indicators . 49


Table: Balance Sheet (AUDmn) . 49


Table: Balance Sheet (US$mn) . 50


Table: Key Ratios (%) . 50


Table: Stock Market Indicators . 52


Table: Balance Sheet (AUDmn) . 52


Table: Balance Sheet (US$mn) . 53


Table: Key Ratios (%) . 53


Table: Stock Market Indicators . 55


Table: Balance Sheet (AUDmn) . 55


Table: Balance Sheet (US$mn) . 56


Table: Key Ratios (%) . 56


Table: Stock Market Indicators . 58


Table: Balance Sheet (AUDmn) . 58


Table: Balance Sheet (US$mn) . 58


Table: Key Ratios (%) . 59


Table: Commercial Banking Business Environment Indicators And Rationale . 62


Table: Weighting Of Indicators. 63


Table: Australia''s Population By Age Group, 1990-2020 (''000) . 65


Table: Australia''s Population By Age Group, 1990-2020 (% of total) . 66


Table: Australia''s Key Population Ratios, 1990-2020 . 67


Table: Australia''s Rural And Urban Population, 1990-2020 . 67

Australia Commercial Banking Report Q3 2012

Published By: Business Monitor International
 

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