Banking industry facts & figures 2020

Economic contribution

In 2020 banks made a direct contribution of $7.86 billion to the New Zealand economy.

Banks spent $6.21 billion running their businesses in New Zealand.

Banks paid $1.65 billion in tax in 2020.

Banks employ over 25,000 people. 

The five major banks paid $2.9 billion to employees nationwide.

Source: KPMG Financial Institutions Performance (FIPS) Review of 2020

Industry strength

New Zealand’s banking system entered the current downturn with strong capital and liquidity buffers, and generally simple business models that generate strong and stable earnings.

Source: Reserve Bank of New Zealand (RBNZ) Financial Stability Report, November 2020

Banking by numbers

New Zealand has over 800 bank branches.

New Zealand has over 2,200 bank ATMs.

New Zealand banks have an asset base (total assets) of $604 billion.

In 2020 the return on assets was 0.71%.

Banks’ average return on equity in 2020 was 9.21%.

Banks’ average net interest margin in 2020 was 1.96%, down from 2.10% in 2019.

In 2020 the five major New Zealand banks had an average total capital adequacy ratio of 15.56%.

Source: KPMG FIPS Review of 2020


Loans to households at December 2020 totalled $304.6 billion.

Loans to businesses (excluding agriculture) at December 2020 totalled $109.3 billion.

Loans to the agricultural sector at December 2020 totalled $62.5 billion.

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