Banking industry facts & figures 2022

Economic contribution

In 2022 banks made a direct contribution of $9.1 billion to the New Zealand economy.

Banks spent $6.35 billion running their businesses in New Zealand.

Banks paid $2.75 billion in tax in 2022.

Banks employ over 28,000 people. 

The five major banks paid $3.25 billion to over 25,000 employees nationwide.

Source: KPMG’s Financial Institutions Performance Survey Review of Banks 2022

Loans to households at December 2022 totalled $345.5 billion.

Loans to businesses (excluding agriculture) at December 2022 totalled $132.9 billion.

Loans to the agricultural sector at December 2022 totalled $61.9 billion.

Source: RBNZ C5 Sector lending (registered banks and non-bank lending institutions)

Industry strength

“New Zealand’s financial system is well placed to support the economy in the face of a rising interest rate environment. Banks’ capital and liquidity positions are strong, and profitability and asset quality remain high. Recent stress tests demonstrate banks’ resilience to scenarios involving rising unemployment and interest rates, and declining house prices.”

Source: Reserve Bank of New Zealand (RBNZ) Financial Stability Report, November 2022

Banking by numbers

New Zealand has over 670 bank branches.

New Zealand has over 2100 bank ATMs.

New Zealand banks have an total assets of $695 billion.

In 2022 the return on assets was 1.08%.

Banks’ average return on equity in 2022 was 13.4%.

Banks’ average net interest margin in 2021 was 2.1%, up from 1.97% in 2021.

In 2022 the five major New Zealand banks had an average total capital adequacy ratio of 16.64%.

Source: KPMG FIPS Review of 2022