Australian major banks have reported a combined cash profit after tax from continuing operations of $26.8 billion, up 54.7 percent on FY20 (but down 2.3 percent on FY19).

Writebacks of collective provisions of $1.7 billion, compared to large collective impairment charges totalling $6.9 billion in 2020 in response to COVID-19, have had a big impact on the shape of Austalia's big four banks' profit results.

The underlying performance trajectory is less turbulent than the headline numbers suggest. Total operating income (on a cash basis) was up 0.1 percent on 2020 and down 1.5 percent on 2019. This almost flat revenue picture is more consistent with the single-digit percentage decline of cash profits between 2019 and 2021.

It is clear that the major banks' performance has seen a turnaround from last year, as the Australian economy entered a new phase of its COVID-19 pandemic response. After the big four banks played a significant role in supporting Australia’s recovery in 2020, they benefited from the country’s improved economic performance in 2021.

They will now need to turn their attention to transformation, as they look to their future performance.

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Major Australian Banks

Read the full results analysis for Year End 2021 in our detailed report

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Results snapshot

An infographic snapshot of the major Australian bank's full year financial results.


Operating income
increased by 0.1% to

🡹 $79.4 billion

Net interest income
decreased by 0.2% to

🡻 $63.5 billion


Cash profit after tax
increased by 54.7% against FY20 and
decreased by 2.3% against FY19 to

🡹 $26.8 billion

Average net interest margin
decreased by 3 bps to

🡻 186 bps


Average return on equity^
increased by 3.2% pts against FY20 and
decreased by 1.4% pts against FY19 to

🡹 9.9%

Average dividend payout ratio
increased by 17.8% to

🡹 70.0%


Average cost to income ratio^
decreased by 1.2% pts to

🡻 52.1%

Share of risk and compliance of total investment spend decreased by 0.9% pts to

🡻 51.1%


Credit impairment charge (as % of GLA) decreased by 46 bps to

🡻 -0.03%

Write-back of credit provisions of

$820 million


Average CET1 capital ratio increased by 131 bps to

🡹 12.7%

Deposit to loan ratio
increased 2.7% pts to

🡹 85.1%

Lending assets
increased by 3.7% pts to

🡹 $2.8 trillion

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