Low interest rates and weak demand for commercial lending has restrained industry revenue growth over the past five years. Industry revenue is forecast to decline by an annualised 4.4% over the five years through 2014-15, to reach $18.8 billion. This decline can be largely attributed to the low interest rate environment and intense competition from national and regional commercial banks. This competition has pushed lending portfolios lower over the past five years. Industry revenue is expected to increase slightly in 2014-15, rising by 2.2% as positive business confidence drives demand for commercial loans.
The Foreign Banks 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.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.