Banking industry facts and figures
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.
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.
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).
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%.
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