Who are the biggest banks in Australia?

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on May 06, 2022 Fact Checked
Who are the biggest banks in Australia?

When choosing a financial institution for your banking needs, it’s useful to know who the major players are in the Australian banking landscape.

The decision on which bank to park your cash, or take out a loan with really depends on your own situation and what you value. If you are looking for easy access to your money through ATMs and value the opportunity to visit a local branch and chat with a staff member, a bigger bank might be what you’re after.

If you are more focused on earning interest on a savings account or term deposit, then smaller banks may offer a better rate as they have to be competitive to attract customers. Similarly, if you’re looking for a local banking experience that gives back to the community, credit unions or customer-owned banks are typically more prolific with these initiatives.

The table below features a selection of home loan products for both owner occupiers and investors across some of the largest banks in Australia.

Lender

Variable
More details
FREE REDRAW FACILITY
  • Pay more to reduce the amount of interest you pay
  • Easily access additional funds in your redraw
  • Great rates and low fees
FREE REDRAW FACILITY

Basic Investment Loan (Principal and Interest) (LVR < 60%)

  • Pay more to reduce the amount of interest you pay
  • Easily access additional funds in your redraw
  • Great rates and low fees
Variable
More details

Basic Variable Rate (Flexi First Option) Home Loan (LVR up to 70%) (New Customer)

    Variable
    More details

    Economy Home Loan (Principal and Interest) (LVR < 70)

      Variable
      More details

      Extra Home Loan (Principal and Interest) (LVR < 70%)

        Variable
        More details

        Simplicity PLUS Home Loan Special Offer (Principal and Interest) (LVR < 70%) (New Customer)

          Variable
          More details

          Home Value Home Loan (Principal and Interest) (LVR < 70%)

            Variable
            More details

            Mortgage Simplifier Investment Loan (Principal and Interest) ($150k-$500k)

              Variable
              More details

              Home Package Plus Investment Variable Special (Principal and Interest) (LVR ≤ 70%)

                Variable
                More details

                Complete Home Loan Investment Variable (Interest Only) (LVR 60%-80%)

                  Variable
                  More details

                  Base Variable Investment Loan Special Offer (Principal and Interest) (LVR < 80%)

                    Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 26, 2022. View disclaimer.

                    Who are the big four banks?

                    You might hear about “the big four” or “the big four banks.” This refers to Commonwealth Bank of Australia (CBA), Westpac Banking Corporation (WBC), National Australia Bank (NAB), and Australian & New Zealand Banking Group (ANZ).

                    These banks must abide by what’s called the ‘four pillars policy’. This policy essentially bans these four banks from ever merging. They are also incredibly large banks.

                    In terms of total assets held as at the end of 2021, according to the Australian Prudential Regulation Authority, the ranking of the big four were:

                    1. CBA - $960.751 billion

                    2. WBC - $901.329 billion

                    3. NAB - $766.063 billion

                    4. ANZ - $642.298 billion

                    This means they collectively hold assets worth nearly $3.3 trillion. A lot of this is tied up in home lending. It’s estimated these four major banks account for up to 80% of the value of home lending in Australia. They also have a strong presence in New Zealand.

                    Top 10 Australian Banks - Market Capitalisation

                    A commonly accepted way to measure the size of a public company is through market capitalisation, or market cap. This is calculated by multiplying the price of a stock by the total number of outstanding shares. The big four banks dominate the Australian Securities Exchange (ASX) in terms of market capitalisation.

                    The top ten banks in terms of market cap are, at the time of writing:

                    1. CBA - $175.6bn

                    2. NAB - $104.2bn

                    3. WBC - $84.2bn

                    4. MQG - $77.59bn

                    5. ANZ - $76.4bn

                    6. BEN (Bendigo Bank) - $5.9bn

                    7. BOQ (Bank of Queensland) - $5.1bn

                    8. VUK (Virgin Money) - $2.55bn

                    9. BFL (BSP Financial Group) - $2.3bn

                    10. JDO (Judo Bank) - $1.8bn

                    However, measuring through market cap can be a fickle beast - share prices can and do change daily. In addition, many international brands have a significant footing in the Australian banking landscape, including HSBC (UK), and ING (Netherlands) and aren’t necessarily listed in Australia.

                    Macquarie - making the ‘big four’ the ‘big five’?

                    Macquarie Bank Limited (MQG) has risen to become one of the largest banks in Australia, and in terms of market cap, it’s larger than some of the big four banks. In late 2021, Macquarie Group Limited hit a market cap of $77.5 billion according to Bloomberg, making it bigger in this regard than ANZ and Westpac.

                    This potentially makes Australia’s banking landscape dominated by ‘the big five’, however Macquarie is not subject to the four pillars policy. Macquarie also has less of a retail banking presence than the other major banks, and sources a lot of its revenue from its investment banking arm, and through international ventures and asset management.

                    Top 10 biggest banks by size of home lending to owner-occupiers

                    Bank

                    Value (billion)

                    Commonwealth Bank

                    $340.650

                    Westpac

                    $274.483

                    NAB

                    $182.225

                    ANZ

                    $172.871

                    Macquarie Bank

                    $50.249

                    ING

                    $46.584

                    BOQ

                    $40.574

                    Bendigo and Adelaide Bank

                    $39.620

                    Suncorp Bank

                    $32.399

                    HSBC

                    $19.439

                    Source: APRA Monthly Authorised Deposit-taking Institution Statistics - March 2022.

                    Top 10 biggest banks by size of home lending to investors

                    Bank

                    Value (billion)

                    Commonwealth Bank

                    $172.094

                    Westpac

                    $153.370

                    NAB

                    $103.771

                    ANZ

                    $87.697

                    Macquarie

                    $36.221

                    BOQ

                    $18.653

                    Bendigo and Adelaide Bank

                    $16.318

                    Suncorp

                    $12.555

                    ING

                    $8.562

                    HSBC

                    $7.506

                    Source: APRA Monthly Authorised Deposit-taking Institution Statistics - March 2022.

                    Top 10 biggest banks by size of household deposits held

                    Bank

                    Value (billion)

                    Commonwealth Bank

                    $347.936

                    Westpac

                    $258.714

                    NAB

                    $167.882

                    ANZ

                    $156.398

                    ING Bank

                    $43.001

                    Bendigo and Adelaide Bank

                    $40.132

                    Macquarie Bank

                    $32.754

                    Suncorp Bank

                    $31.299

                    BOQ

                    $29.727

                    HSBC

                    $14.264

                    Source: APRA Monthly Authorised Deposit-taking Institution Statistics - March 2022.

                    The argument for banking with major banks

                    • Access to your money - Although digital banking is now used more than cash, banking with the big four will mean easier access to ATMs for withdrawing and depositing cash.

                    • Visit a local branch - The bigger banks offer the most active branches to get assistance with your banking. Many smaller banks have entirely online services, meaning you can’t visit a branch in your area or speak to a staff member for help with your banking.

                    • Customer service - Whether in Australia or overseas, you’ll likely have access to customer service with a major bank. Many smaller banks have no dedicated customer service phone number or in person services.

                    • A holistic banking experience - Many major banks can be your one-stop shop for everything from banking, insurance, financial advice, share trading, asset management and more. Smaller banks might not be able to compete with this level of in-depth service.

                    The argument for banking with a smaller bank

                    • Better deals - Due to the popularity of the big four, smaller banks will often offer better rates on savings accounts, and home loan products in an effort to attract customers. Shopping around can often save you money by finding a great deal with a smaller financial institution.

                    • Lower fees - Smaller banks reduce their overhead by digitising their customer service and other services. These cuts often filter through to their customers. The bigger banks have branches all over the country, with huge numbers of staff, this means higher costs which can lead to higher fees for their customers.

                    • Faster turnaround times - Major banks often have a lot going on, and may take longer to process your home loan application. Smaller banks may pride themselves on faster turnaround times enabling you to get approved for products sooner.

                    • Apps - While the big four banks have pretty swish apps, smaller banks such as neobanks pride themselves on their user experience. In these apps you’ll often find money management tools, unique insights and other slick capabilities that other banks' apps may not have developed.

                    Top 10 Largest Customer Owned Banks

                    Customer-owned, or mutual banks mean customers have an equal shareholding of the bank. This is regardless of the size of their loan or deposits, and these banks do not have shareholders. Customer-owned banks typically also include credit unions and building societies, and were often founded out of providing banking services to a particular profession e.g. scientists, teachers, police and so on.

                    Institution Assets (billion)
                    Great Southern Bank (formerly CUA) $20.554
                    Heritage Bank $14.339
                    Newcastle Permanent $13.932
                    People's Choice $11.913
                    Bank Australia $10.997
                    Teachers Mutual $10.199
                    Greater Bank $10.193
                    Beyond Bank $9.627
                    IMB $8.708
                    P&N Bank $8.692

                    Source: Australian Prudential Regulation Authority, March 2022 ADI Statistics

                    Customer-owned banks are generally much smaller than big banks, but various mergers over the years mean some have formed a formidable footing in the Australian banking landscape.

                    The table below displays a range of home loans for owner occupiers from customer-owned institutions.

                    Lender

                    Variable
                    More details
                    $0 APPLICATION FEE
                    $0 APPLICATION FEE

                    Budget Home Loan (Principal and Interest) (LVR < 80%)

                      Variable
                      More details
                      NO UPFRONT OR ONGOING FEES
                      NO UPFRONT OR ONGOING FEES

                      Real Deal Variable Home Loan Special (Principal and Interest) (LVR < 80%)

                        Variable
                        More details
                        APPLY ONLINE & SAVE $835. T&Cs APPLY
                        • Trusted by Australians for over 75 years
                        • $0 monthly or annual fees
                        • Unlimited extra repayments + redraw at any time for free
                        APPLY ONLINE & SAVE $835. T&Cs APPLY

                        Basic Variable Owner Occupier Principal & Interest (LVR ≤ 80%)

                        • Trusted by Australians for over 75 years
                        • $0 monthly or annual fees
                        • Unlimited extra repayments + redraw at any time for free
                        Variable
                        More details
                        • Trusted by Australians for over 75 years
                        • $0 monthly or annual fees
                        • Unlimited extra repayments + redraw at any time for free

                        Purple Basic Variable Home Loan

                        • Trusted by Australians for over 75 years
                        • $0 monthly or annual fees
                        • Unlimited extra repayments + redraw at any time for free
                        Variable
                        More details
                        • Trusted by Australians for over 75 years
                        • $0 monthly or annual fees
                        • Unlimited extra repayments + redraw at any time for free

                        Classic Home Loan

                        • Trusted by Australians for over 75 years
                        • $0 monthly or annual fees
                        • Unlimited extra repayments + redraw at any time for free
                        Variable
                        More details
                        • Trusted by Australians for over 75 years
                        • $0 monthly or annual fees
                        • Unlimited extra repayments + redraw at any time for free

                        Basic Home Loan (LVR 60%-70%)

                        • Trusted by Australians for over 75 years
                        • $0 monthly or annual fees
                        • Unlimited extra repayments + redraw at any time for free
                        Variable
                        More details
                        • Trusted by Australians for over 75 years
                        • $0 monthly or annual fees
                        • Unlimited extra repayments + redraw at any time for free

                        Discount Variable Home Loan ($150k+) (LVR 80%-90%)

                        • Trusted by Australians for over 75 years
                        • $0 monthly or annual fees
                        • Unlimited extra repayments + redraw at any time for free
                        Variable
                        More details
                        • Trusted by Australians for over 75 years
                        • $0 monthly or annual fees
                        • Unlimited extra repayments + redraw at any time for free

                        & Introductory Home Loan

                        • Trusted by Australians for over 75 years
                        • $0 monthly or annual fees
                        • Unlimited extra repayments + redraw at any time for free
                        Variable
                        More details
                        • Trusted by Australians for over 75 years
                        • $0 monthly or annual fees
                        • Unlimited extra repayments + redraw at any time for free

                        Great Rate Variable Home Loan (NSW, ACT & QLD only)

                        • Trusted by Australians for over 75 years
                        • $0 monthly or annual fees
                        • Unlimited extra repayments + redraw at any time for free

                        Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 26, 2022. View disclaimer.

                        What about a non-bank lender?

                        If you are considering taking out a home loan, car loan or other loan product, there are other financial institutions that provide these services. Non-bank lenders offer a legitimate alternative to traditional banks and have created a competitive environment which provides more choice for the consumer.

                        The table below features a selection of home loans from non-bank lenders.

                        Lender

                        Variable
                        More details
                        UNLIMITED REDRAWSSPECIAL OFFER
                        • Fast turnaround times, can meet 30-day settlement
                        • For purchase and refinance, min 20% deposit
                        • No ongoing or monthly fees, add offset for 0.10%
                        UNLIMITED REDRAWSSPECIAL OFFER

                        Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

                        • Fast turnaround times, can meet 30-day settlement
                        • For purchase and refinance, min 20% deposit
                        • No ongoing or monthly fees, add offset for 0.10%
                        Variable
                        More details
                        AN EASY DIGITAL APPLICATION
                        • No ongoing fees - None!
                        • Unlimited additional repayments
                        • Easy online application, find out if you're approved quick!
                        • Redraw- Access your additional payments if you need them
                        • Use the app to get loan insights to help you pay off your home loan faster
                        AN EASY DIGITAL APPLICATION

                        Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

                        • No ongoing fees - None!
                        • Unlimited additional repayments
                        • Easy online application, find out if you're approved quick!
                        • Redraw- Access your additional payments if you need them
                        • Use the app to get loan insights to help you pay off your home loan faster
                        Variable
                        More details
                        100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
                        • No upfront or ongoing fees
                        • 100% full offset account
                        • Extra repayments + redraw services
                        100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

                        Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

                        • No upfront or ongoing fees
                        • 100% full offset account
                        • Extra repayments + redraw services
                        Variable
                        More details
                        ZERO APPLICATION FEESFEE FREE OFFSET
                        • We lower your rate based off how much you’ve paid down your loan
                        • Automatic rate match
                        • No upfront or ongoing fees
                        ZERO APPLICATION FEESFEE FREE OFFSET

                        Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

                        • We lower your rate based off how much you’ve paid down your loan
                        • Automatic rate match
                        • No upfront or ongoing fees
                        Variable
                        More details
                        NO APPLICATION FEES
                        • We lower your rate based off how much you’ve paid down your loan
                        • Automatic rate match
                        • No upfront or ongoing fees
                        NO APPLICATION FEES

                        Yard Home Loan (Principal and Interest) (Special) (LVR < 80%)

                        • We lower your rate based off how much you’ve paid down your loan
                        • Automatic rate match
                        • No upfront or ongoing fees
                        Variable
                        More details
                        NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
                        • We lower your rate based off how much you’ve paid down your loan
                        • Automatic rate match
                        • No upfront or ongoing fees
                        NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

                        Variable Home Loan (Principal and Interest)

                        • We lower your rate based off how much you’ve paid down your loan
                        • Automatic rate match
                        • No upfront or ongoing fees

                        Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 26, 2022. View disclaimer.


                        Image by James Wainscoat via Unsplash

                        Disclaimers

                        The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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                        Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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