In its Commercial Banks Reporting Season Wrap Credit Suisse said the latest major bank Pillar 3 disclosures indicate the impaireds ratio has declined for all banks, for both businesses and mortgages.
The report said the past-due ratio also appears to be stabilising at 0.27 per cent but is gradually edging higher with mortgages.
Collective provision coverage of credit risk-weighted assets also declined for all banks.
Net write-offs were higher than in recent quarters due to the spike in business, but were consistent with quarterly levels seen throughout the past four years.
The report found revenue growth in the banking sector is somewhat struggling, however, with pressures coming from markets in banking and margins in funds management.
ANZ noted revenue growth in the third quarter was a little softer and downgraded its growth expectations for the future.
Revenues for CBA were impacted by an impairment charge to CBA’s Vietnam International Bank investment and the divestment of the property funds management business.
NAB experienced a decline in revenue growth of one per cent in the third quarter which it attributed to financial markets income.
Credit Suisse said that nevertheless, “business credit growth is starting to stir in some segments and group margins remained broadly stable”.
The report said margins were, however, more resilient in consumer banking than in business banking in the most recent reporting season.
