, Australia
Photo by Hugo Heimendinger via Pexels.

Stable outlook for Australia’s Defence Bank: Moody’s

Asset quality pressures will remain contained.

Australia’s Defence Bank has a stable outlook thanks to the stable income of its customer base, Moody’s said.

Asset quality pressures are expected to remain contained due to the bank’s focus on lending to current and previous Australian Defence Force (ADF) personnel, who have strong job and income stability and receive subsidies under the Defence Home Ownership Assistance Scheme (DHOAS).

DHOAS also tilts the bank's loan portfolio toward owner-occupied loans with principal and interest repayments, which Moody's considers to be of lower risk than investor loans or interest-only loans, the ratings agency said.

Rising funding costs, however, will put a small dent in the bank's net interest margin amidst a rising interest rate environment, despite higher asset yields.

The bank may also need more wholesale funding to finance credit growth when systemwide savings ratios and deposit growth slow from pandemic highs, Moody’s added.

Follow the link for more news on

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!


CIMB Niaga leads the way in captivating Indonesia’s youth
The bank’s digital solutions are winning over younger generations with 3.2M mobile users and 96% digital transaction rate in 2023.
BCA sets benchmark in Indonesia’s microfinance sector
Innovative approaches reflect the bank’s commitment to pushing financial inclusion and fostering economic growth.