National and Regional Commercial Banks in Australia Industry Market Research Report now updated by IBISWorld

Share Article

The Australian banking system has remained solid during a time when other global banking markets have faltered considerably. With house prices and the economy remaining relatively strong, driven by economic stimulus and continued international demand for commodities, Australian banks faced comparatively low levels of bad debts, offsetting much of the increase in loan loss provisions with slightly higher interest margins. For these reasons, industry research firm IBISWorld has updated its report on the National and Regional Commercial Banks industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Bank revenue is to improve in 2012-13, supported by a stabilised economy and consumer confidence

The Australian banking system has remained solid during a time when other global banking markets have faltered considerably. National and Regional Commercial Banks industry revenue is forecast to decline an annualised 0.7% over the five years through 2012-13 to reach $208.6 billion. According to IBISWorld analyst Ee Jen Lee, “Australia's banks were shielded from spiralling global funding costs by the Federal Government's wholesale funding guarantee”. With house prices and the economy remaining relatively strong, driven by economic stimulus and continued international demand for commodities, Australian banks faced comparatively low levels of bad debts, offsetting much of the increase in loan loss provisions with slightly higher interest margins. Although loan loss provision has fallen from its peak, increasing wholesale funding costs will put pressure on profit margins.

National and Regional Commercial Banks industry revenue is expected to rise by 5.6% in 2012-13. Lee adds, “the uncertainty surrounding the global economy is curtailing growth and the fall in housing prices is compounding this effect”. The turbulent economic environment has adversely affected business and consumer confidence. Commercial lending is stagnating and home loan growth is slowing. From 2013-14, banks will likely begin to experience solid and improving growth, as a stabilised economy will reinvigorate business and consumer confidence. Although competition will erode profit margins, banks are expected to continue to dominate the market with the four major banks retaining significant control. However, the gradual contraction of the retail and manufacturing sectors is expected to impede revenue growth. Revenue is forecast to grow over the five years to 2017-18.

The National and Regional Commercial Banks industry displays a high level of concentration. The major players in the industry are Commonwealth Bank of Australia, Westpac Banking Corporation, National Australia Bank Limited, and Australia and New Zealand Banking Group Limited.

For more information, visit IBISWorld’s National and Regional Commercial Banks report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Enterprises in this industry are recognised as Australian-owned banks and Australian operational banks engaged in banking activities. National and regional banks generate revenue through investments, interest income on loans, advances, fees and commission income.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
Visit website