Sector Outlook

Australia boasts a sophisticated and diverse banking sector, underpinned by robust regulation and supervision. Our banking institutions continued to perform strongly during and following the GFC. This has enhanced the Australian banking sector’s reputation internationally.

During the 2018/2019 FY, the Australian banking sector continued to perform strongly relative to overseas peers. Our banking institutions remain profitable and well-capitalised (albeit some banks more so than others).

However, significant industry headwinds exist. The strategic agenda for many Australian banking institutions is currently dominated by: structural changes due to automation;  growing competition from non-bank and non-traditional lenders; and heightened regulatory scrutiny.

Source: Gen Advisory analysis, October 2018.

Our Research

Gen Advisory’s research to date on the Australian banking sector is presented below.

To view detailed presentation, please click here.

For a glossary of terms and abbreviations relating to the Australian banking sector, please click here.
For a list of applicable references, please click here.

Latest News:

Banking Sector Update & Outlook – 1H 2019

In the first half of 2019, the four major Australian banks reported a combined cash profit after tax of A$14.5 billion – a 4.0% decrease from 1H 2018. This decline in profitability was attributable to the following factors:

  • • Subdued credit growth due to a cooling housing market and softer domestic economy;
  • • Tightening credit standards;
  • • Post-Royal Commission remediation costs;
  • • Increased regulatory and compliance spend; and
  • • Increased capital requirements for the four majors’ New Zealand subsidiaries.

Source: Gen Advisory analysis, May 2019.

How Gen Advisory can help ADIs address industry and regulatory changes

Drawing from our toolkit of services, ways in which Gen Advisory can help Australian ADIs anticipate and respond to industry and regulatory changes include the following:

  • • Providing the ADI’s Board with regular industry updates – both domestic and international.
  • • Providing an ADI’s Board with regular regulatory updates – both domestic and international.
  • • Providing input into the ADI’s strategic plans.
  • • Reviewing the ADI’s business and regulatory strategies to ensure ongoing suitability.
  • • Delivering bespoke research on a specific industry/regulatory development of interest.
  • • Delivering staff training and capacity-building.
  • • Managing and executing strategic projects on behalf of the ADI.

“Contributing towards a resilient and sustainable Australian banking sector."


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