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
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)