Industry Analysis & Industry Trends
The Australian banking system has remained solid during a time when other global banking markets have faltered considerably. Despite industry revenue falling to $187.7 billion in 2012-13, the large majority of banks have remained profitable. Although industry revenue over the five years through 2012-13 is forecast to decline at a compound annual rate of 2.8%, Australian banks are well capitalised. Although profit dropped in 2008-09 as margins slipped and revenue fell, the industry's overall profitability and that of individual players remained robust in contrast to the catastrophic losses experienced elsewhere across the globe. Australia's banks were shielded from spiralling global funding costs by the Federal Government's wholesale funding guarantee... purchase to read more
Industry Report - Industry Products Chapter
The primary source of revenue in the National and Regional Commercial Banks industry is interest earned on home, business and personal loans. Banks also earn fees related to these loans, for things such as administration and late payments. Relatively small in proportion, fees on savings accounts and their transactions make up the remainder of industry revenue.
Home loans
The home loan product segment comprises loans issued to first homebuyers, owner-occupiers and investors for the purposes of purchasing real estate. They can be fixed rate loans, variable rate loans or a combination of the two, with durations typically ranging between 25 and 30 years... purchase to read more