Banking industry facts and figures

Economic contribution

In 2016 banks made a direct contribution of $6.6 billion to the New Zealand economy.

Banks spent $4.8 billion running their businesses in New Zealand.

Banks paid $1.8 billion in tax in 2016.

Banks employ over 25,000 people. 

The five major banks paid $2.45 billion to employees nationwide.

Source: KPMG Financial Institutions Performance (FIPS) Review of 2016

Industry strength

New Zealand’s banks are sound, well-capitalised and efficient compared to their global peers. The banking system has buffers of capital, liquid assets and stable funding in excess of current regulatory requirements.

Source: Reserve Bank of New Zealand (RBNZ) Financial Stability Report, May 2017

New Zealand ranked first in financial market development in the World Economic Forum’s Global Competitive Report 2016-17.

The soundness of New Zealand’s banks continues to rank highly (fourth out of 140 countries).

Source: World Economic Forum, Global Competitive Report 2016-17

Banking by numbers

New Zealand has over 1,000 bank branches.

New Zealand has over 2,400 bank ATMs.

New Zealand banks have an asset base (total tangible assets) of $500 billion.

In 2016 the return on assets was 1%.

Banks’ average return on equity in 2016 was 13.96%.

Banks’ average net interest margin in 2016 was 2.15%, down from 2.28% in 2015.

Source:  KPMG FIPS Review of 2016

In December 2016 New Zealand banks had a total capital adequacy ratio of 13.69%.

Source: RBNZ G3 Summary of selected aggregate balance sheet data 

Loans to households at April 2017 totalled $243.6 billion.

Loans to businesses (excluding agriculture) at April 2017 totalled $100.3 billion.

Loans to the agricultural sector at April 2017 totalled $59.2 billion.

Source: RBNZ C5 Sector credit