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Australia:
Alone, On Top, Down Under
Snapshot: 22 Aust., 7 N.Z. banks in the 500. (1999: 22/6).
Total assets of banks in the 500: Aust. $560.3b. ($506.9b.); N.Z.
$54.2b ($51.3b)Total profits: Aust. $5.4b. ($4.2b.); N.Z $392m. ($467m).
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The
economy is powering ahead despite several interest rate hikes this
year, and banks are riding high on fat margins. They have benefited
from several years of strong profits to substantially improve capitalization.
RESTRUCTURING Perhaps because business is so good at home,
banks seem to have stopped looking to expand elsewhere. ANZ Bank sold
its Asia-centered subsidiary, Grindlays, to Standard Chartered earlier
this year.
LENDING Housing and personal lending has been robust, growing
at 17% a year in the first seven months of 2000 despite interest rate
hikes of 1.5% since November. Credit card debt is soaring at 30% annually.
However, business lending, which got Australian banks into big trouble
during the last downturn, is growing at a comparatively feeble 7%.
LIBERALIZATION Ostensibly the financial services industry is
open to foreigners. But none has ever tried to test the nation's appetite
for enlightened internationalism by taking over one of Australia's
six "pillar" institutions. Given the inward focus of the pillars,
that's probably not surprising.
Performance
Topnotchers - Aust. & N.Z. 10 Best Performing Banks
|
Institution |
HQ |
Assets
$
Mill |
Profits
$
Mill |
Profit
as
% of |
500
Rank
|
Assets |
Equity |
1 |
NATIONAL
AUSTRALIA BANK |
Melbourne |
166,120 |
1,844.4
|
1.1% |
15.2% |
15 |
2 |
AUSTRALIA
& N.Z. BANKING GROUP |
Melbourne |
97,422 |
967.6
|
1.0% |
15.7% |
21 |
3 |
WESTPAC
BANKING CORP. |
Sydney |
91,677 |
951.9
|
1.0% |
16.2% |
23 |
4 |
COMMONWEALTH
BANK OF AUST. |
Sydney |
90,288 |
929.7
|
1.0% |
21.1% |
24 |
5 |
ST.
GEORGE BANK |
Kogarah |
29,432 |
102.6
|
0.3% |
4.7% |
78 |
6 |
BANK
OF NEW ZEALAND |
Wellington |
16,142
|
186.4
|
1.2% |
26.3% |
132 |
7 |
NATIONAL
BANK OF N.Z. |
Wellington |
15,516
|
173.4
|
1.1% |
21.7% |
137 |
8 |
MACQUARIE
BANK |
Sydney |
15,292 |
137.5
|
0.9% |
17.0% |
139 |
9 |
COLONIAL
STATE BANK |
Sydney |
15,129 |
114.5
|
0.8% |
12.2% |
142 |
10 |
SUNCORP-METWAY |
Brisbane |
14,054 |
161.5
|
1.1% |
13.1% |
146 |
Write to Asiaweek at mail@web.asiaweek.com
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Rating
show the number of banks in each category; "E" is the lowest
grade for financial soundness.
Souce: Moody's Investors Service
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