Top 10 Banks of Australia by Assets and Deposits

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Includes: ANZBY, CMWAY, NABZY, STGKY, WBK
by: David Hunkar

The top 10 Australian banks based on assets and deposits as of June 2009 are listed below. This list was compiled with data from the “Monthly Banking Statistics” report released by the Australian Prudential Regulation Authority (APRA) on July 31st.

The Top Ten Australian Banks by Assets

Rank Bank Assets (A$ Millions)
1 Commonwealth Bank of Australia 317,697
2 National Australia Bank Limited 247,782
3 Westpac Banking Corporation 247,386
4 Australia and New Zealand Banking Group Limited 230,031
5 St.George Bank Limited 84,610
6 Bank of Western Australia Ltd 57,065
7 Suncorp-Metway Limited 47,979
8 ING Bank (Australia) Limited 38,852
9 Bendigo and Adelaide Bank Limited 29,378
10 Bank of Queensland Limited 20,440
Click to enlarge

The Top Ten Australian Banks by Deposits

Rank Bank Deposits (A$ Millions)
1 Commonwealth Bank of Australia 271,292
2 Westpac Banking Corporation 210,051
3 National Australia Bank Limited 185,241
4 Australia and New Zealand Banking Group Limited 182,032
5 St.George Bank Limited 66,807
6 Bank of Western Australia Ltd 36,945
7 Suncorp-Metway Limited 30,476
8 Bendigo and Adelaide Bank Limited 30,205
9 ING Bank (Australia) Limited 28,700
10 Bank of Queensland Limited 21,762
Click to enlarge

The five large banks in terms of both assets and deposits are Commonwealth Bank of Australia, National Australia Bank Limited, Westpac Banking Corporation, Australia and New Zealand Banking Group Limited and St. George Bank Limited. Assets is defined as the “Total gross loans and advances” in the APRA statistics report. Except for St. George Bank, all four other banks are also the Australia’s most valuable brands according to BrandFinance. In 2008, these four banks were in the top 10 list with National Australia Bank Limited ranked as the number one brand.

Australian companies usually have high dividend payout ratios and dividend yields as shown in the chart below:

click to enlarge

Australia-Companies-Dividend-Yield

The current yields of the top 5 banks are shown below:

Commonwealth Bank of Australia (OTCPK:CMWAY)
Dividend Yield: N/A
Started trading from March this year

National Australia Bank Limited (OTCPK:NABZY)
Dividend Yield: 5.18%

Westpac Banking Corporation (NYSE:WBK)
Dividend Yield: 4.63%

Today Westpac posted earnings of $1.1 billion in the first quarter but bad debt went up to to $865 million from $811 due to deterioration in commercial real estate and New Zealand.

Australia and New Zealand Banking Group Limited (OTCPK:ANZBY)
Dividend Yield: 4.57%

St. George Bank Limited (OTC:STGKY)
Dividend Yield: N/A

The Australian housing market has held up well since the recession began as the demand for housing is high but the supply is down. As the domestic economy and the Asian countries recover, Australian banks will likely do well.