The Australian Prudential Regulation Authority (APRA) has published its latest findings in the Quarterly Authorised deposit-taking institution (ADI) Performance and Quarterly ADI Property Exposures reports for the quarter ending 30 June 2025, revealing significant growth in key financial metrics for the country’s banks.
For the quarter, the net profit after tax for ADIs rose to $40.1 billion, up from $39 billion last year, marking a 2.9% increase. Total assets also saw a substantial uplift, climbing to $6,673.8 billion from $6,226.2 billion, reflecting a growth of 7.2%.
In terms of capital adequacy, the total capital base increased from $448.7 billion to $462.9 billion, while the total risk-weighted assets rose from $2,199.8 billion to $2,269.4 billion, both showing a year-on-year change of 3.2%. The total capital ratio, however, remained stable at 20.4%.
Liquidity metrics reveal a slight decline in both the liquidity coverage ratio and minimum liquidity holdings ratio. The liquidity coverage ratio dropped from 133% to 130.1%, while the minimum liquidity holdings ratio decreased from 16.9% to 16.3%.
The report also highlights trends in residential mortgage lending within the ADIs. Total credit outstanding increased to $2,391.8 billion, a year-on-year rise of 5.7%. Owner-occupied loans constituted 67.5% of the portfolio, slightly down from 67.8%, whereas investment loans increased their share from 30.3% to 30.5%. Notably, loans with a loan-to-valuation ratio of 80% or greater fell to 16.9%.
Moreover, the report shows a decline in delinquency rates, with the share of loans 30-89 days past due decreasing from 0.66% to 0.55%. However, non-performing loans slightly increased, moving from 1.04% to 1.07%.
A notable rise was observed in new loans funded during the quarter, which reached $187.6 billion, up 16.2% from $161.5 billion in June 2024. The share of new owner-occupied loans funded remained stable at 63.6%, while the share of new investment loans dipped to 34.1%.
In the commercial property sector, exposure limits rose from $457.8 billion to $498.9 billion, reflecting a 9% increase, while commercial property exposures climbed from $424.1 billion to $464.1 billion, representing a 9.4% growth.
These reports provide comprehensive insights into the financial performance, position, and risk indicators of ADIs, underlining a robust banking sector amid evolving economic conditions.
