Australian banks prove themselves regionally with high loan growth and low NPLs

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Australian banks prove themselves regionally with high loan growth and low NPLs

While Australian banks lead the region in several indicators, New Zealand banks lead in ROE

For more data and topical analytics please visit http://theasianbanker.com/bankmetrics/

Singapore, November 5th 2010

Asian Banker Research


Key discussion notes

• ANZ’s NPLs have surged to first place among the Big Four, albeit from a low base

• the average of Australia’s NPLs is lower than that of any other country in the region, while NZ’s is relatively high

• Australian banks lead the region in terms of fee income, while NZ banks have poor fee income

• The ROE of New Zealand banks is at least twice that of other banks in the region, while Australian banks’ is below average

• Australian loan growth is the second-highest in the region, while NZ’s is among the lowest


China’s banks lead Japan’s on two counts, including profit

Source: The Asian Banker


Asia Pacific’s Strongest Banks Scorecard

Source: The Asian Banker


Australia: 14 banks in the AB500. Total assets: $2,388.6 billion. Total net profit: $13.9 billion

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New Zealand bank average ROE is more than twice others’


The Asian Banker 500

• What is The Asian Banker 500?

Now in its ninth year, The Asian Banker 500 (AB500) is an annual study of the financial and business performance of the commercial banking industry in the Asia Pacific region. The study comprises two different lists: the first ranks the top 500 banks in the region by asset size, while the second ranks the same 500 banks by strength, an evaluation that is based on a belief that a strong bank demonstrates long-term profitability from its core businesses. The AB500 has been expanded as of this year; past years looked at only 300 banks.

• Which banks are included?

The Asian Banker ranks financial institutions by asset size and focuses on Asia Pacific banks east of Iran. We publish online an expanded version of this list, which includes over 700 banks from the Middle East and Central Asia as well. The focus of the list is on commercial banks and financial holding companies with a significant proportion of activity in commercial banking; the AB500 does not include central banks, policy banks or finance companies.


The Asian Banker 500

• How do we collect and treat the data?

Bank annual reports and statistics provided by central banks or industry associations are our main sources of data. In the absence of up-to-date annual reports, we contact banks directly to source financial results. Consolidated figures are used for banking groups, except when non-banking activities account for a substantial portion of the consolidated figures. All figures are converted into US dollars using rates current at the end of the banks’ respective financial years.

• Who puts The AB500 together?

The team of researchers who created the AB500 is led by Yi Yuandong and Pheng Chan. Additional research was provided by Arush Chopra, Doron Foo, Guan Chenhao, Peter Hoflich and Aldo Joson.


These slides are a part of a full presentation available to the subscribers of Project BankMetrics

• To read more go to http://theasianbanker.com/bankmetrics/

Business

Australian banks prove themselves regionally with high loan growth and low NPLs