Banking industry facts and figures

Economic contribution

In 2017 banks made a direct contribution of $7.2 billion to the New Zealand economy.

Banks spent $5.2 billion running their businesses in New Zealand.

Banks paid $2 billion in tax in 2017.

Banks employ over 25,000 people. 

The five major banks paid $2.48 billion to employees nationwide.

Source: KPMG Financial Institutions Performance (FIPS) Review of 2017

Industry strength

New Zealand’s banks are sound, well-capitalised and efficient. The banking system has adequate buffers of capital, liquid assets and stable funding relative to regulatory requirements.

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

New Zealand ranked first in financial market development in the World Economic Forum’s Global Competitive Report 2017-18.

The soundness of New Zealand’s banks continues to rank highly (third out of 137 countries).

Source: World Economic Forum, Global Competitive Report 2017-18

Banking by numbers

New Zealand has over 1,000 bank branches.

New Zealand has over 2,500 bank ATMs.

New Zealand banks have an asset base (total assets) of $508 billion.

In 2017 the return on assets was 1.04%.

Banks’ average return on equity in 2017 was 14.43%.

Banks’ average net interest margin in 2017 was 2.08%, down from 2.17% in 2016.

Source:  KPMG FIPS Review of 2017

In December 2017 New Zealand banks had a total capital adequacy ratio of 14.41%.

Source: RBNZ G3 Summary of selected aggregate balance sheet data 

Loans to households at December 2017 totalled $252.9 billion.

Loans to businesses (excluding agriculture) at December 2017 totalled $103.2 billion.

Loans to the agricultural sector at December 2017 totalled $60.5 billion.

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