New Zealand

Details

  • Type: Publication series, Survey report
  • Date: 4/03/2014

To discuss FIPS 2013, contact

 John Kensington

John Kensington 

Head of Financial Services

+64 9 367 5866

Financial Services

Focused and practical audit, tax and advisory services for the insurance, retail banking, corporate and investment sectors.

Financial Institutions Performance Survey – Review of 2013 

Our latest Financial Institutions Performance Survey show New Zealand’s banking sector had a solid 2013, with the slow economic recovery picking up the pace and beginning to flow through into results.

Facts and figures summarised below:

 

  • Profits rose 8.61% across the banking industry in 2013
  • increase in lending assets of 4.35%
  • Return on assets recovered to 1.0%, just below the level last seen before the global financial crisis (GFC).
  • Return on equity remains at 14.21%, similar with 2012. Crucial to the post-GFC adjustment, impaired asset expenses dropped $153 million from $659 million in 2012 to $506 million - a decrease of 23.21%. This is now the fourth consecutive year impaired asset expenses have declined.
  • Competition for ‘good customers’ intensified over 2013
  • The Loan-to-Value ratio (LVR) rules have been long and involved for both banks and customers.
  • If global markets don’t have an upset, the funding costs will remain suppressed which will help banks retain their margins in 2014.

 

Overall, there are strong, green shoots emerging, with our banks having seen real loan growth on their balance sheets in 2013. Shielding these 'green shoots' from the frost of regulatory reform is likely a challenge for 2014. The Reserve Bank's restrictions on high LVR lending, anti-money laundering legislation coming on-stream and Foreign Account Tax Compliance Act (FATCA) reporting have all proved burdensome for our banks in 2013.

 

Purchase your copy of FIPS 2013 online. Printed copy of the publication is available for $125 (incl GST) each, or electronic PDF copy is available for $500. (incl GST)

 

FIPS Review of 2013 provides an in-depth analysis on the performance of New Zealand’s registered banks, major finance companies and savings institutions with balance dates between 30 September 2012 and 30 September 2013. A combination of quantitative and qualitative research is used to compile our analysis which takes information from publicly available annual reports and disclosure statements and validates this through nearly 30 one-on-one interviews with senior leaders within the banks and finance companies. We partner with and work alongside Massey University for the data collection and analysis.

 Watch John Kensington's summary of the findings from FIPS 2013


Financial Institutions Performance Survey - FIPS surveys and quarterly updates produced by KPMG's Financial Services team. 

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Read Ian Proudfoot’s article from FIPS Review of 2013

Read Ian Proudfoot’s article from FIPS Review of 2013

The article [PDF: 814KB] covered issues faced by the agricultural sector in 2013 and provide an insight into the challenges to securing the next generation capital the industry needs.