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Vidhu Bajaj
- 3 min readLatest News
Some of the top-rated car loans in October 2024
Mark Bristow
- 6 min readLatest News
What to expect from the RBA meeting in November 2024
Will the RBA deliver a rate that stops the nation this November? While economists from some of Australia’s leading banks had previously predicted a cut this month, most are now looking to the new year for the start of an easing cycle.
The Reserve Bank of Australia (RBA) uses the national cash rate as a tool to help tackle inflation, with the central bank’s goal to bring inflation back down into a target band of between 2% and 3%. According to the Australian Bureau of Statistics (ABS), the latest quarterly Consumer Price Index (CPI) was 2.8%, which is at the upper end of the band. That said, the RBA tends to pay special attention to trimmed mean inflation, which is still outside the band at 3.5%.
Laine Gordon
- 5 min readLatest News
CPI at lowest level in 3.5 years while CBA pushes back cash rate cut forecast to 2025
All bets are off for a November RBA rate cut, despite a drop to Australia’s annual inflation rate from 3.8 per cent to 2.8 per cent in the September quarter.
The Consumer Price Index is now at the lowest level since the March quarter of 2021, and well below the peak of 7.8 per cent at the end of 2022, according to the ABS.
The significant fall in headline CPI was largely on the back of energy rebates kicking in, and cheaper petrol prices.
Trimmed inflation, the RBA’s preferred measure, printed at 3.5 per cent in September, down from 4.0 per cent in the June quarter.
ABS Consumer Price Index, Australia - annual movement
Month |
Quarterly CPI results |
Monthly CPI indicator |
Dec-22 - peak |
7.8% |
8.4% |
Jan-23 |
7.5% |
|
Feb-23 |
6.8% |
|
Mar-23 |
7.0% |
6.3% |
Apr-23 |
6.7% |
|
May-23 |
5.5% |
|
Jun-23 |
6.0% |
5.4% |
Jul-23 |
4.9% |
|
Aug-23 |
5.2% |
|
Sep-23 |
5.4% |
5.6% |
Oct-23 |
4.9% |
|
Nov-23 |
4.3% |
|
Dec-23 |
4.1% |
3.4% |
Jan-24 |
3.4% |
|
Feb-24 |
3.4% |
|
Mar-24 |
3.6% |
3.5% |
Apr-24 |
3.6% |
|
May-24 |
4.0% |
|
Jun-24 |
3.8% |
3.8% |
Jul-24 |
|
3.5% |
Aug-24 |
|
2.7% |
Sep-24 |
2.8% |
2.1% |
Source: ABS Consumer Price Index, Australia, Quarterly CPI and Monthly CPI indicator, annual change (%).
CBA takes rate cut off the table for 2024
Today’s ABS Consumer Price Index data printed broadly in line with market expectations. However, trimmed inflation came in higher than was forecasted by Australia’s biggest bank, CBA.
As a result, CBA today updated its cash rate forecast, pushing the first projected cash rate cut out from December 2024 to February 2025.
This means the bank expects the cash rate will settle at 3.35 per cent, instead of 3.10 per cent, by the end of next year.
CBA forecast
|
Change |
Cash rate |
Feb-25 |
-0.25% |
4.10% |
Q2 25 |
-0.25% |
3.85% |
Q3 25 |
-0.25% |
3.60% |
Q4 25 |
-0.25% |
3.35% |
Source: CBA economics.
All four big bank economic teams now believe the next move from the RBA will be a 0.25 percentage point cut in February 2025.
Current big four bank cash rate forecasts
Next RBA move |
Total number of cuts forecasted |
|
CBA |
-0.25% pts in Feb-25 |
4 cuts to 3.35% |
Westpac |
-0.25% pts in Feb-25 |
4 cuts to 3.35% |
NAB |
-0.25% pts in Feb-25 |
5 cuts to 3.10% |
ANZ |
-0.25% pts in Feb-25 |
3 cuts to 3.60% |
While today’s data shows CPI is moving in the right direction, the RBA will need to be absolutely sure trimmed mean inflation is going to return to its 2-3 per cent target before cash rate cuts are on the agenda in future Board meetings.
What can borrowers do now?
It has been almost 12 months since the RBA last changed the cash rate, so borrowers should consider checking that their interest rate is still competitive.
-
6.35%: average existing owner-occupier variable rate (RBA lending rates)
-
5.64%: lowest variable rate on RateCity.com.au (discounted for first 2 years)
-
4.99%: lowest fixed rate on RateCity.com.au for 3 years
-
40: number of lenders with at least one variable rate under 6%.
RateCity.com.au money editor, Laine Gordon, said: “While this CPI result was broadly as expected, it won’t be enough for the RBA to pull the trigger on a cash rate cut in 2024.”
“Australia’s inflation is moving in the right direction. This is good news for households that have faced a headwind of cost of living pressures,” she said.
“Electricity rebates have brought some temporary relief to families doing it tough and petrol prices at the bowser have come down substantially.
“Household spending data from CBA in September has shown a ‘muted response’ to income tax cuts, with many families preferring to pay down debt and save rather than spend it.
“No one knows when exactly the cash rate will come down, but if CBA’s economists are on the money, rate relief is moving further into the horizon.
“That said, if all four major banks’ economic teams are correct, households could see rate relief in the next four or five months.
“If you’ve got a mortgage and want to see your repayments go down, make it happen yourself and don’t waste any time doing it,” she said.
Lowest home loan rates on RateCity.com.au
|
Rate from |
Lender |
Variable |
5.64% |
Hume Bank |
1 year |
5.50% |
Geelong Bank |
2 year |
5.49% |
Newcastle Permanent |
3 year |
4.99% |
SWS Bank |
4 year |
5.49% |
People's Choice CU |
5 year |
5.49% |
Heritage Bank |
Source: RateCity.com.au. Hume Bank’s rate is discounted for the first 2 years.
Laine Gordon
- 7 min readLatest News
Banks close hundreds of branches and ATMs last financial year: APRA
More than 1,600 bank branches closed nationally in the last five years, with 230 branches shut in the last financial year alone, as customer move their transactions online.
The latest APRA Points of Presence data for June 2024, released today, shows the number of branches has dropped by 6 per cent in the space of a year (30 June 23 – 30 June 24), and by 32 per cent in the last five years.
The number of ATMs has also continued to fall, decreasing by 217 (4%) in the last financial year. ATM numbers have more than halved in the last five years, with 6,084 fewer available (-53%).
This trend comes as Australians increasingly ditch cash in favour of digital banking. The latest RBA consumer payment survey showed cash accounted for just 13 per cent of the number of all payments in 2022, less than half of what it was just three years before (27% in 2019).
‘High cash users’, who use cash for 80 per cent or more of their in-person transactions, represented around 7 per cent of Australians in 2022 – a number that, according to the RBA, has also halved since 2019.
That said, cash usage, while dropping, is not dead in the water. The latest RBA statistics show in the month of August 2024, a total of $8.9 billion was withdrawn from ATMs across Australia in more than 29 million transactions in seasonally adjusted terms.
APRA Points of Presence: branches
The number of branches in NSW has dropped by 78 over the last financial year, however, as a percentage change, the biggest drop was recorded in WA (-9%).
Westpac recorded the largest drop in the number of branches out of the big four banks, closing 66 branches in the last financial year. However, in percentage terms, Westpac, NAB and ANZ all closed 11 per cent of their ATMs.
Australia’s largest bank, CBA, recorded the lowest number of closures in percentage terms at 4 per cent.
Number of branches per state and territory
Number: June 2024 |
Annual change (number, %) |
Change from 5 yrs ago (number, %) |
|
NSW |
1,115 |
-78, -7% |
-540, -33% |
VIC |
776 |
-56, -7% |
-439, -36% |
QLD |
732 |
-47, -6% |
-285, -28% |
SA |
243 |
-13, -5% |
-115, -32% |
WA |
308 |
-31, -9% |
-159, -34% |
TAS |
84 |
0, 0% |
-33, -28% |
NT |
46 |
0, 0% |
-6, -12% |
ACT |
54 |
-5, -8% |
-36, -40% |
Other |
2 |
0, 0% |
-2, -50% |
TOTAL |
3,360 |
-230, -6% |
-1,615, -32% |
Source: APRA points of presence, June 2024, released 16 Oct 2024. Other includes Jervis Bay Territory and the external Territories of Christmas Island and Cocos (Keeling) Islands.
Number of branches by remoteness in Australia
|
Number: end FY2024 |
Change from previous yr |
Change from 5 yrs ago (number, %) |
Major cities |
1,872 |
-178, -9% |
-1,176, -39% |
Inner regional |
841 |
-29, -3% |
-284, -25% |
Outer regional |
517 |
-15, -3% |
-123, -19% |
Remote |
91 |
-5, -5% |
-19, -17% |
Very remote |
39 |
-3, -7% |
-13, -25% |
Source: APRA points of presence, June 2024, released 16 Oct 2024.
Big four branches
Number: June 2024 |
Annual change (number, %) |
Change from 5 yrs ago (number, %) |
|
CBA |
696 |
-32, -4% |
-318, -31% |
Westpac |
517 |
-66, -11% |
-435, -46% |
NAB |
420 |
-53, -11% |
-236, -36% |
ANZ |
305 |
-39, -11% |
-275, -47% |
Source: APRA points of presence, June 2024, released 16 Oct 2024.
APRA Points of Presence: ATMs
The total number of ATMs in Australia dropped by 217 in the last financial year – a decline of 4 per cent.
Compared to FY2019 there were 6,084 fewer ATMs, a drop of 53 per cent.
The biggest annual drop was recorded in the major cities (-5%), with ACT recording the biggest annual drop in percentage terms (-8%).
The big four banks’ ATMs have been free to all Australians since 2017, however, collectively the number of these ATMs continues to drop. The latest APRA data shows the number of big bank ATMs has reduced by 4 per cent in the last financial year and 51 per cent since June 2019.
Number of ATMs per state and territory
Number: June 2024 |
Annual change (number, %) |
Change from 5 yrs ago (number, %) |
|
NSW |
1,758 |
-93, -5% |
-2,048, -54% |
VIC |
1,504 |
-36, -2% |
-1,417, -49% |
QLD |
1,074 |
-41, -4% |
-1,210, -53% |
SA |
374 |
-16, -4% |
-371, -50% |
WA |
480 |
-30, -6% |
-688, -59% |
TAS |
109 |
0, 0% |
-153, -58% |
NT |
95 |
+6, +7% |
-65, -41% |
ACT |
81 |
-7, -8% |
-132, -62% |
Other |
1 |
0, 0% |
0, 0% |
TOTAL |
5,476 |
-217, -4% |
-6,084, -53% |
Source: APRA points of presence, June 2024, released 16 Oct 2024. Other includes Jervis Bay Territory and the external Territories of Christmas Island and Cocos (Keeling) Islands.
Number of ATMs by remoteness in Australia
By remoteness area |
Number: end FY2024 |
Annual change (number, %) |
Change from 5 yrs ago (number, %) |
Major cities |
3,633 |
-185, -5% |
-4,641, -56% |
Inner regional |
1,068 |
-20, -2% |
-942, -47% |
Outer regional |
619 |
-10, -2% |
-423, -41% |
Remote |
98 |
-3, -3% |
-55, -36% |
Very remote |
58 |
+1, +2% |
-23, -28% |
Source: APRA points of presence, June 2024, released 16 Oct 2024.
Big four bank ATM numbers
|
Number: end FY2024 |
Annual change (number, %) |
Change from 5 yrs ago (number, %) |
CBA |
1,916 |
-40, -2% |
-1,507, -44% |
Westpac |
829 |
-88, -10% |
-1,372, -62% |
NAB |
733 |
-44, -6% |
-192, -21% |
ANZ |
866 |
-4, -0.5% |
-1,447, -63% |
Source: APRA points of presence, June 2024, released 16 Oct 2024.
Bank@Post continues to be an important option
The number of ‘other face-to-face’ points of presence, as categorised by APRA, which includes Bank@Post services, also declined in the last financial year.
Bank@Post is a service provided by Australia Post outlets where customers can perform basic banking services, such as depositing and withdrawing cash, if their bank participates in the scheme.
However, the APRA data shows there was a 2 per cent drop in the number of these points of presence over the last financial year, and a 4 per cent drop in the last five years.
RateCity.com.au money editor, Laine Gordon, said: “Banks have closed hundreds of branches and ATMs nationally in the last financial year, as Australians ditch cash and move to digital banking.”
“Latest figures from APRA show close to one-third of branches have shut in the past five financial years, while more than half of ATMs have closed in that time,” she said.
“As more people choose to do their banking online, or from an app on their phone, banks have had to reassess their points of presence.
“Some banks tapped into existing facilities such as third-party ATM networks and Australia Post branches to provide customers with access to basic banking services.
“Customers who relied on a branch or ATM could be comforted by the fact that if they needed to deposit or withdraw cash they could head to their nearest post office. However, this data shows 130 Bank@Post services were closed in the past five years, including 63 in the last financial year.
“While most Australians don’t live off cash alone, we aren’t a cashless society just yet. Latest RBA statistics show $8.9 billion is withdrawn on average from ATMs nationally every single month
“Banks provide an important service in regional and remote areas, however, in many cases banks are walking away from these services as they become increasingly unprofitable,” she said.
Laine Gordon
- 4 min readLatest News
ANZ cuts fixed rates: last of the big four to join under 6% club
Australia’s fourth largest lender, ANZ, has today cut its fixed home loan rates by up to 0.60 percentage points for owner-occupiers, and up to 0.70 percentage points for investors.
This takes ANZ’s lowest fixed rate to 5.99 per cent for both 2- and 3-year terms for owner-occupiers with at least a 20 per cent deposit (loan-to-value-ratio of 80 per cent or less).
Today’s fixed rate changes from ANZ
Rates are for owner-occupiers paying principal and interest (deposits of 20% or more)
Fixed term |
Old rate |
New rate from |
Change %-points |
1-year |
6.69% |
6.39% |
-0.30 |
2-year |
6.54% |
5.99% |
-0.55 |
3-year |
6.59% |
5.99% |
-0.60 |
4-year |
6.74% |
6.14% |
-0.60 |
5-year |
6.84% |
6.24% |
-0.60 |
Source: RateCity.com.au
How the big four now stack up
Today’s move brings ANZ into the ‘under 6 per cent club’, joining its big four bank competitors:
- · July 22: NAB cut some fixed rates under 6 per cent + October 8: NAB cut fixed rates again
- · August 21: Westpac cut some fixed rates under 6 per cent
- · August 23: CBA cut some fixed rates under 6 per cent.
At 5.99 per cent, ANZ’s lowest 3-year fixed rate remains higher than its major bank competitors, with CBA, Westpac and NAB’s rates starting from 5.89 per cent.
Note that deposit requirements differ between the big four banks.
That said, the lowest fixed rate on the RateCity.com.au database is 0.90 percentage points lower than the big four banks’ lowest offering, at 4.99 per cent for 3 years from SWS Bank.
Big four banks: lowest advertised rates
Loan type |
CBA |
Westpac |
NAB |
ANZ |
1 year |
6.39% |
6.09% |
6.29% |
6.39% |
2 year |
6.29% |
5.89% |
6.04% |
5.99% |
3 year |
5.89% |
5.89% |
5.89% |
5.99% |
4 year |
6.29% |
5.89% |
6.24% |
6.14% |
5 year |
6.69% |
5.89% |
6.29% |
6.24% |
Variable |
6.15%* |
6.44%, 2 yrs then +0.4% pts |
6.79% |
6.14%* |
Source: RateCity.com.au. Note: rates are for owner-occupiers paying principal and interest. Deposit requirements apply. * rates are for CBA and ANZ’s digital-only home loans.
The RateCity.com.au database shows there are now over 70 lenders with at least one fixed rate under 6 per cent, while there are over 30 lenders with at least one variable rate starting with a ‘5’.
Lenders that have moved at least one home loan rate in the last 2 months (12 August to 11 October)
Lenders that have cut |
Lenders that have hiked |
|
1yr fixed |
47 |
3 |
2yr fixed |
50 |
2 |
3yr fixed |
46 |
1 |
4yr fixed |
26 |
0 |
5yr fixed |
34 |
0 |
Source: RateCity.com.au. Note: A number of lenders have changed multiple home loan rates
RateCity.com.au money editor Laine Gordon said: “ANZ is the last big four bank to cut a fixed home loan rate below 6 per cent, but the bank has succumbed to competition.”
“The number of lenders joining the under 6 club is quickly growing,” she said.
“Two months ago there were around 50 fixed rates starting with a ‘5’, and now there are over 70, and the rate cut party is far from over.
“A big bank fixed rate starting with a ‘5’ is likely to get people talking, however, it’s unlikely to get people fixing their home loans.
“Fixing for three years is a big financial commitment at any time, but particularly when the future of the cash rate remains uncertain.
“The RateCity.com.au database shows most banks’ lowest advertised rates are now fixed, but a few cash rate changes could change that equation.
“People with a home loan should see this as a reminder to check their rate and do a quick search to make sure it is competitive now.
“It’s been 11 months since the last RBA cash rate change, yet lots of lenders have cut their rates in that time – you don’t want to be left behind,” she said.
Lowest home loan rates on the RateCity.com.au database
Fixed term |
Advertised rate from |
Lender |
1-yr |
5.50% |
Geelong Bank |
2-yr |
5.39% |
Macquarie Bank |
3-yr |
4.99% |
SWS Bank |
4-yr |
5.39% |
Macquarie Bank |
5-yr |
5.34% |
Macquarie Bank |
Variable |
5.75% |
Abal Banking |
Source: RateCity.com.au. Note: rates are for owner-occupiers paying principal and interest. Deposit requirements apply, excludes green loans, lowest variable excludes introductory rates.
Vidhu Bajaj
- 3 min readLatest News
Some of the top-rated car loans in October 2024
Mark Bristow
- 6 min readLatest News
What to expect from the RBA meeting in November 2024
Will the RBA deliver a rate that stops the nation this November? While economists from some of Australia’s leading banks had previously predicted a cut this month, most are now looking to the new year for the start of an easing cycle.
The Reserve Bank of Australia (RBA) uses the national cash rate as a tool to help tackle inflation, with the central bank’s goal to bring inflation back down into a target band of between 2% and 3%. According to the Australian Bureau of Statistics (ABS), the latest quarterly Consumer Price Index (CPI) was 2.8%, which is at the upper end of the band. That said, the RBA tends to pay special attention to trimmed mean inflation, which is still outside the band at 3.5%.
Laine Gordon
- 5 min readLatest News
CPI at lowest level in 3.5 years while CBA pushes back cash rate cut forecast to 2025
All bets are off for a November RBA rate cut, despite a drop to Australia’s annual inflation rate from 3.8 per cent to 2.8 per cent in the September quarter.
The Consumer Price Index is now at the lowest level since the March quarter of 2021, and well below the peak of 7.8 per cent at the end of 2022, according to the ABS.
The significant fall in headline CPI was largely on the back of energy rebates kicking in, and cheaper petrol prices.
Trimmed inflation, the RBA’s preferred measure, printed at 3.5 per cent in September, down from 4.0 per cent in the June quarter.
ABS Consumer Price Index, Australia - annual movement
Month |
Quarterly CPI results |
Monthly CPI indicator |
Dec-22 - peak |
7.8% |
8.4% |
Jan-23 |
7.5% |
|
Feb-23 |
6.8% |
|
Mar-23 |
7.0% |
6.3% |
Apr-23 |
6.7% |
|
May-23 |
5.5% |
|
Jun-23 |
6.0% |
5.4% |
Jul-23 |
4.9% |
|
Aug-23 |
5.2% |
|
Sep-23 |
5.4% |
5.6% |
Oct-23 |
4.9% |
|
Nov-23 |
4.3% |
|
Dec-23 |
4.1% |
3.4% |
Jan-24 |
3.4% |
|
Feb-24 |
3.4% |
|
Mar-24 |
3.6% |
3.5% |
Apr-24 |
3.6% |
|
May-24 |
4.0% |
|
Jun-24 |
3.8% |
3.8% |
Jul-24 |
|
3.5% |
Aug-24 |
|
2.7% |
Sep-24 |
2.8% |
2.1% |
Source: ABS Consumer Price Index, Australia, Quarterly CPI and Monthly CPI indicator, annual change (%).
CBA takes rate cut off the table for 2024
Today’s ABS Consumer Price Index data printed broadly in line with market expectations. However, trimmed inflation came in higher than was forecasted by Australia’s biggest bank, CBA.
As a result, CBA today updated its cash rate forecast, pushing the first projected cash rate cut out from December 2024 to February 2025.
This means the bank expects the cash rate will settle at 3.35 per cent, instead of 3.10 per cent, by the end of next year.
CBA forecast
|
Change |
Cash rate |
Feb-25 |
-0.25% |
4.10% |
Q2 25 |
-0.25% |
3.85% |
Q3 25 |
-0.25% |
3.60% |
Q4 25 |
-0.25% |
3.35% |
Source: CBA economics.
All four big bank economic teams now believe the next move from the RBA will be a 0.25 percentage point cut in February 2025.
Current big four bank cash rate forecasts
Next RBA move |
Total number of cuts forecasted |
|
CBA |
-0.25% pts in Feb-25 |
4 cuts to 3.35% |
Westpac |
-0.25% pts in Feb-25 |
4 cuts to 3.35% |
NAB |
-0.25% pts in Feb-25 |
5 cuts to 3.10% |
ANZ |
-0.25% pts in Feb-25 |
3 cuts to 3.60% |
While today’s data shows CPI is moving in the right direction, the RBA will need to be absolutely sure trimmed mean inflation is going to return to its 2-3 per cent target before cash rate cuts are on the agenda in future Board meetings.
What can borrowers do now?
It has been almost 12 months since the RBA last changed the cash rate, so borrowers should consider checking that their interest rate is still competitive.
-
6.35%: average existing owner-occupier variable rate (RBA lending rates)
-
5.64%: lowest variable rate on RateCity.com.au (discounted for first 2 years)
-
4.99%: lowest fixed rate on RateCity.com.au for 3 years
-
40: number of lenders with at least one variable rate under 6%.
RateCity.com.au money editor, Laine Gordon, said: “While this CPI result was broadly as expected, it won’t be enough for the RBA to pull the trigger on a cash rate cut in 2024.”
“Australia’s inflation is moving in the right direction. This is good news for households that have faced a headwind of cost of living pressures,” she said.
“Electricity rebates have brought some temporary relief to families doing it tough and petrol prices at the bowser have come down substantially.
“Household spending data from CBA in September has shown a ‘muted response’ to income tax cuts, with many families preferring to pay down debt and save rather than spend it.
“No one knows when exactly the cash rate will come down, but if CBA’s economists are on the money, rate relief is moving further into the horizon.
“That said, if all four major banks’ economic teams are correct, households could see rate relief in the next four or five months.
“If you’ve got a mortgage and want to see your repayments go down, make it happen yourself and don’t waste any time doing it,” she said.
Lowest home loan rates on RateCity.com.au
|
Rate from |
Lender |
Variable |
5.64% |
Hume Bank |
1 year |
5.50% |
Geelong Bank |
2 year |
5.49% |
Newcastle Permanent |
3 year |
4.99% |
SWS Bank |
4 year |
5.49% |
People's Choice CU |
5 year |
5.49% |
Heritage Bank |
Source: RateCity.com.au. Hume Bank’s rate is discounted for the first 2 years.
Laine Gordon
- 7 min readLatest News
Banks close hundreds of branches and ATMs last financial year: APRA
More than 1,600 bank branches closed nationally in the last five years, with 230 branches shut in the last financial year alone, as customer move their transactions online.
The latest APRA Points of Presence data for June 2024, released today, shows the number of branches has dropped by 6 per cent in the space of a year (30 June 23 – 30 June 24), and by 32 per cent in the last five years.
The number of ATMs has also continued to fall, decreasing by 217 (4%) in the last financial year. ATM numbers have more than halved in the last five years, with 6,084 fewer available (-53%).
This trend comes as Australians increasingly ditch cash in favour of digital banking. The latest RBA consumer payment survey showed cash accounted for just 13 per cent of the number of all payments in 2022, less than half of what it was just three years before (27% in 2019).
‘High cash users’, who use cash for 80 per cent or more of their in-person transactions, represented around 7 per cent of Australians in 2022 – a number that, according to the RBA, has also halved since 2019.
That said, cash usage, while dropping, is not dead in the water. The latest RBA statistics show in the month of August 2024, a total of $8.9 billion was withdrawn from ATMs across Australia in more than 29 million transactions in seasonally adjusted terms.
APRA Points of Presence: branches
The number of branches in NSW has dropped by 78 over the last financial year, however, as a percentage change, the biggest drop was recorded in WA (-9%).
Westpac recorded the largest drop in the number of branches out of the big four banks, closing 66 branches in the last financial year. However, in percentage terms, Westpac, NAB and ANZ all closed 11 per cent of their ATMs.
Australia’s largest bank, CBA, recorded the lowest number of closures in percentage terms at 4 per cent.
Number of branches per state and territory
Number: June 2024 |
Annual change (number, %) |
Change from 5 yrs ago (number, %) |
|
NSW |
1,115 |
-78, -7% |
-540, -33% |
VIC |
776 |
-56, -7% |
-439, -36% |
QLD |
732 |
-47, -6% |
-285, -28% |
SA |
243 |
-13, -5% |
-115, -32% |
WA |
308 |
-31, -9% |
-159, -34% |
TAS |
84 |
0, 0% |
-33, -28% |
NT |
46 |
0, 0% |
-6, -12% |
ACT |
54 |
-5, -8% |
-36, -40% |
Other |
2 |
0, 0% |
-2, -50% |
TOTAL |
3,360 |
-230, -6% |
-1,615, -32% |
Source: APRA points of presence, June 2024, released 16 Oct 2024. Other includes Jervis Bay Territory and the external Territories of Christmas Island and Cocos (Keeling) Islands.
Number of branches by remoteness in Australia
|
Number: end FY2024 |
Change from previous yr |
Change from 5 yrs ago (number, %) |
Major cities |
1,872 |
-178, -9% |
-1,176, -39% |
Inner regional |
841 |
-29, -3% |
-284, -25% |
Outer regional |
517 |
-15, -3% |
-123, -19% |
Remote |
91 |
-5, -5% |
-19, -17% |
Very remote |
39 |
-3, -7% |
-13, -25% |
Source: APRA points of presence, June 2024, released 16 Oct 2024.
Big four branches
Number: June 2024 |
Annual change (number, %) |
Change from 5 yrs ago (number, %) |
|
CBA |
696 |
-32, -4% |
-318, -31% |
Westpac |
517 |
-66, -11% |
-435, -46% |
NAB |
420 |
-53, -11% |
-236, -36% |
ANZ |
305 |
-39, -11% |
-275, -47% |
Source: APRA points of presence, June 2024, released 16 Oct 2024.
APRA Points of Presence: ATMs
The total number of ATMs in Australia dropped by 217 in the last financial year – a decline of 4 per cent.
Compared to FY2019 there were 6,084 fewer ATMs, a drop of 53 per cent.
The biggest annual drop was recorded in the major cities (-5%), with ACT recording the biggest annual drop in percentage terms (-8%).
The big four banks’ ATMs have been free to all Australians since 2017, however, collectively the number of these ATMs continues to drop. The latest APRA data shows the number of big bank ATMs has reduced by 4 per cent in the last financial year and 51 per cent since June 2019.
Number of ATMs per state and territory
Number: June 2024 |
Annual change (number, %) |
Change from 5 yrs ago (number, %) |
|
NSW |
1,758 |
-93, -5% |
-2,048, -54% |
VIC |
1,504 |
-36, -2% |
-1,417, -49% |
QLD |
1,074 |
-41, -4% |
-1,210, -53% |
SA |
374 |
-16, -4% |
-371, -50% |
WA |
480 |
-30, -6% |
-688, -59% |
TAS |
109 |
0, 0% |
-153, -58% |
NT |
95 |
+6, +7% |
-65, -41% |
ACT |
81 |
-7, -8% |
-132, -62% |
Other |
1 |
0, 0% |
0, 0% |
TOTAL |
5,476 |
-217, -4% |
-6,084, -53% |
Source: APRA points of presence, June 2024, released 16 Oct 2024. Other includes Jervis Bay Territory and the external Territories of Christmas Island and Cocos (Keeling) Islands.
Number of ATMs by remoteness in Australia
By remoteness area |
Number: end FY2024 |
Annual change (number, %) |
Change from 5 yrs ago (number, %) |
Major cities |
3,633 |
-185, -5% |
-4,641, -56% |
Inner regional |
1,068 |
-20, -2% |
-942, -47% |
Outer regional |
619 |
-10, -2% |
-423, -41% |
Remote |
98 |
-3, -3% |
-55, -36% |
Very remote |
58 |
+1, +2% |
-23, -28% |
Source: APRA points of presence, June 2024, released 16 Oct 2024.
Big four bank ATM numbers
|
Number: end FY2024 |
Annual change (number, %) |
Change from 5 yrs ago (number, %) |
CBA |
1,916 |
-40, -2% |
-1,507, -44% |
Westpac |
829 |
-88, -10% |
-1,372, -62% |
NAB |
733 |
-44, -6% |
-192, -21% |
ANZ |
866 |
-4, -0.5% |
-1,447, -63% |
Source: APRA points of presence, June 2024, released 16 Oct 2024.
Bank@Post continues to be an important option
The number of ‘other face-to-face’ points of presence, as categorised by APRA, which includes Bank@Post services, also declined in the last financial year.
Bank@Post is a service provided by Australia Post outlets where customers can perform basic banking services, such as depositing and withdrawing cash, if their bank participates in the scheme.
However, the APRA data shows there was a 2 per cent drop in the number of these points of presence over the last financial year, and a 4 per cent drop in the last five years.
RateCity.com.au money editor, Laine Gordon, said: “Banks have closed hundreds of branches and ATMs nationally in the last financial year, as Australians ditch cash and move to digital banking.”
“Latest figures from APRA show close to one-third of branches have shut in the past five financial years, while more than half of ATMs have closed in that time,” she said.
“As more people choose to do their banking online, or from an app on their phone, banks have had to reassess their points of presence.
“Some banks tapped into existing facilities such as third-party ATM networks and Australia Post branches to provide customers with access to basic banking services.
“Customers who relied on a branch or ATM could be comforted by the fact that if they needed to deposit or withdraw cash they could head to their nearest post office. However, this data shows 130 Bank@Post services were closed in the past five years, including 63 in the last financial year.
“While most Australians don’t live off cash alone, we aren’t a cashless society just yet. Latest RBA statistics show $8.9 billion is withdrawn on average from ATMs nationally every single month
“Banks provide an important service in regional and remote areas, however, in many cases banks are walking away from these services as they become increasingly unprofitable,” she said.
Laine Gordon
- 4 min readLatest News
ANZ cuts fixed rates: last of the big four to join under 6% club
Australia’s fourth largest lender, ANZ, has today cut its fixed home loan rates by up to 0.60 percentage points for owner-occupiers, and up to 0.70 percentage points for investors.
This takes ANZ’s lowest fixed rate to 5.99 per cent for both 2- and 3-year terms for owner-occupiers with at least a 20 per cent deposit (loan-to-value-ratio of 80 per cent or less).
Today’s fixed rate changes from ANZ
Rates are for owner-occupiers paying principal and interest (deposits of 20% or more)
Fixed term |
Old rate |
New rate from |
Change %-points |
1-year |
6.69% |
6.39% |
-0.30 |
2-year |
6.54% |
5.99% |
-0.55 |
3-year |
6.59% |
5.99% |
-0.60 |
4-year |
6.74% |
6.14% |
-0.60 |
5-year |
6.84% |
6.24% |
-0.60 |
Source: RateCity.com.au
How the big four now stack up
Today’s move brings ANZ into the ‘under 6 per cent club’, joining its big four bank competitors:
- · July 22: NAB cut some fixed rates under 6 per cent + October 8: NAB cut fixed rates again
- · August 21: Westpac cut some fixed rates under 6 per cent
- · August 23: CBA cut some fixed rates under 6 per cent.
At 5.99 per cent, ANZ’s lowest 3-year fixed rate remains higher than its major bank competitors, with CBA, Westpac and NAB’s rates starting from 5.89 per cent.
Note that deposit requirements differ between the big four banks.
That said, the lowest fixed rate on the RateCity.com.au database is 0.90 percentage points lower than the big four banks’ lowest offering, at 4.99 per cent for 3 years from SWS Bank.
Big four banks: lowest advertised rates
Loan type |
CBA |
Westpac |
NAB |
ANZ |
1 year |
6.39% |
6.09% |
6.29% |
6.39% |
2 year |
6.29% |
5.89% |
6.04% |
5.99% |
3 year |
5.89% |
5.89% |
5.89% |
5.99% |
4 year |
6.29% |
5.89% |
6.24% |
6.14% |
5 year |
6.69% |
5.89% |
6.29% |
6.24% |
Variable |
6.15%* |
6.44%, 2 yrs then +0.4% pts |
6.79% |
6.14%* |
Source: RateCity.com.au. Note: rates are for owner-occupiers paying principal and interest. Deposit requirements apply. * rates are for CBA and ANZ’s digital-only home loans.
The RateCity.com.au database shows there are now over 70 lenders with at least one fixed rate under 6 per cent, while there are over 30 lenders with at least one variable rate starting with a ‘5’.
Lenders that have moved at least one home loan rate in the last 2 months (12 August to 11 October)
Lenders that have cut |
Lenders that have hiked |
|
1yr fixed |
47 |
3 |
2yr fixed |
50 |
2 |
3yr fixed |
46 |
1 |
4yr fixed |
26 |
0 |
5yr fixed |
34 |
0 |
Source: RateCity.com.au. Note: A number of lenders have changed multiple home loan rates
RateCity.com.au money editor Laine Gordon said: “ANZ is the last big four bank to cut a fixed home loan rate below 6 per cent, but the bank has succumbed to competition.”
“The number of lenders joining the under 6 club is quickly growing,” she said.
“Two months ago there were around 50 fixed rates starting with a ‘5’, and now there are over 70, and the rate cut party is far from over.
“A big bank fixed rate starting with a ‘5’ is likely to get people talking, however, it’s unlikely to get people fixing their home loans.
“Fixing for three years is a big financial commitment at any time, but particularly when the future of the cash rate remains uncertain.
“The RateCity.com.au database shows most banks’ lowest advertised rates are now fixed, but a few cash rate changes could change that equation.
“People with a home loan should see this as a reminder to check their rate and do a quick search to make sure it is competitive now.
“It’s been 11 months since the last RBA cash rate change, yet lots of lenders have cut their rates in that time – you don’t want to be left behind,” she said.
Lowest home loan rates on the RateCity.com.au database
Fixed term |
Advertised rate from |
Lender |
1-yr |
5.50% |
Geelong Bank |
2-yr |
5.39% |
Macquarie Bank |
3-yr |
4.99% |
SWS Bank |
4-yr |
5.39% |
Macquarie Bank |
5-yr |
5.34% |
Macquarie Bank |
Variable |
5.75% |
Abal Banking |
Source: RateCity.com.au. Note: rates are for owner-occupiers paying principal and interest. Deposit requirements apply, excludes green loans, lowest variable excludes introductory rates.
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