Overview

Banking on it: Increases in the cash rate are projected to return industry revenue to growth

IBISWorld’s Foreign Banks market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Foreign bank subsidiaries have struggled to compete with the scale of local banks
  • Foreign banks are at a disadvantage compared with national banks due to lending regulations
  • Rising competition from domestic banks for retail clients is likely to limit industry growth

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    Industry Analysis & Industry Trends

    Low interest rates and weak demand for commercial lending have driven down industry revenue over the past five years. Revenue is expected to decline at an annualised 7.8% over the five years through 2016-17, to total $16.9 billion. Intense competition from domestic banks has further added to the industry's poor performance, holding back growth in foreign banks' lending portfolios, particularly in the residential mortgage lending of foreign subsidiaries. Industry revenue is expected to decline further in the current year, falling by 4.1% as the RBA maintains a record low cash rate. Despite falling revenue, profitability has improved over the period due to the lower funding costs for banks...

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    Industry Report - Industry Locations Chapter

    Business locations are composed of bank branches and headquarters, as this represents the reach and geographic distribution of foreign banks' operations. However, a large number of foreign banks have only set up back-office operations in Australia, with business transacted by phone or through online platforms. Sydney is Australia's finance capital and has been of growing significance as a regional financial hub in the Asia-Pacific region. As a result, New South Wales accounts for most of the foreign banks' locations.

    The banks are generally located close to major markets, which is primarily made up of the corporate and financial intermediaries market. Unl..

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    Additional Insights for the Foreign Banks Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Foreign Banks Industry are

  • Superior financial management and debt management
  • Ability to raise revenue from additional sources
  • Membership of joint marketing/distribution operations
  • IBISWorld analysts also discuss how external factors such as Cash rate and Business confidence index in the Foreign Banks industry impact industry performance..

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    Industry Products

    What is the Foreign Banks Industry?

    The industry comprises the banking activities of foreign bank subsidiaries, branches and representative offices in Australia. Foreign banks generate revenue through interest income on loans and advances, and fee and commission income.

    Industry Products
    Housing loans
    Term loans
    Other lending activities
    Other financial products
    Industry Activities
    Development bank operation
    Savings bank operation
    Trading bank operation

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Cash rate
  • Business confidence index
  • Household consumption expenditure
  • Total capital expenditure
  • Residential property yields

  • Current Performance
  • Revenue and assets
  • Profitability improves
  • European banks forced out
  • Chart: Revenue Growth

  • Industry Outlook
  • Economic conditions
  • Increasing competition
  • Operational changes
  • Table: Foreign Banks Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Foreign Banks Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Construction
  • Information Media and Telecommunications
  • Financial and Insurance Services

  • Key Selling Industries
  • Accounting Services
  • Financial and Insurance Services
  • Legal Services

  • Products & Services
  • Term loans
  • Other financial products
  • Housing loans
  • Other lending activities
  • Chart: Foreign Banks Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private clients
  • Corporate clients
  • Financial intermediaries
  • Chart: Major Market Segmentation for the Foreign Banks Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Interest expenses
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Foreign Banks

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Foreign Banks Industry

  • Industry Globalization
    Major Companies
    ING Bank (Australia) LimitedCitigroup Pty LimitedHSBC Australia Holdings Pty Limited
  • Table: ING Bank (Australia) Limited - financial performance
  • Table: Citigroup Pty Limited - financial performance
  • Table: HSBC Australia Holdings Pty Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Foreign Banks Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Foreign Banks Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Foreign Bank Branches
  • Banks that are licensed to conduct banking business in Australia through branches, but with a restriction on accepting retail deposits.
  • Foreign Bank Subsidiaries
  • Locally incorporated companies that have a licence to collect retail deposits of less than $250,000.
  • Securitisation
  • The act of producing investment securities from cashflows from specific assets.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Foreign Banks:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Foreign Banks market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Foreign Banks, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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