Australian major banks have reported improved financials for the full financial year 2022, driven by continued strong post-COVID demand and margin recovery supported by rising interest rates.
The Australian economy has continued its strong post-COVID recovery, with the impacts of the RBA’s seven successive interest rate rises since May 2022 yet to drive any material slowdown in business and consumer activity. As a result, the Majors have benefited from continued credit growth in their FY22 results.
However, there is a more challenging outlook for the Majors with inflation putting pressure on their cost bases and new provisions being taken for potential economic stress ahead. The big question is – is this the calm before the storm?
Our report, Major Australia Banks: Full Year 2022 Results Analysis, provides the full commentary and insights.
Major Australian Banks
Read the full results analysis for Year End 2022 in our detailed report
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Results snapshot
An infographic snapshot of the major Australian bank's 2022 full year financial results.
REVENUE
Operating income
increased by 1.6% to
🡹 $80.7 billion
Net interest income
increased by 2.9% to
🡹 $65.8 billion
EARNINGS
Cash profit after tax
increased by 6.5% to
🡹 $28.5 billion
Average net interest margin
decreased by 9.5 bps to
🡻 178 bps
SHAREHOLDER RETURNS
Average return on equity^
increased by 0.7% pts to
🡹 10.6%
Average dividend payout ratio
remained steady at
⬌ 71.0%
EXPENSES
Average cost to income ratio
decreased by 2.0% pts to
🡻 50.2%
Share of risk and compliance of total investment spend decreased by 6.1% pts to
🡻 45.0%
ASSET QUALITY
Average credit impairment provisions (as % of GLA) decreased by 11 bps to
🡻 0.66%
Write-back of credit provisions of
$925 million
BALANCE SHEET
Average CET1 capital ratio decreased by 102 bps to
🡻 11.7%
Deposit to loan ratio
decreased 0.1% pts to
🡻 86.1%
Lending assets
increased by 7.0% to
🡹 $3 trillion
Note: Comparisons are to the 2021 financial year, adjusted for restatements as applicable
^includes notable items
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