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.

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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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