New Zealand

Details

  • Industry: Financial Services
  • Type: Press release
  • Date: 18/04/2013

Media contact

Brett Cammell

External Communications

+64 9 367 5977

+64 21 335 740 

bcammell@kpmg.co.nz

Major Banks continue to show positive growth 

Media release -  18 April 2013


Analysis of data from the country’s retail banks for the December 2012 quarter shows net profits have risen by 10.5% to $855 million. This is an increase by $81 million from the previous quarter.

“Continued strength in the banking sector is positive from an overall New Zealand prosperity perspective. The Cyprus bailout only shows what happens when the banking sector isn’t well managed. All would agree that depositors taking haircuts is not an ideal situation”. Says John Kensington, KPMG’s head of Financial Services.

Net interest income remains flat, increasing by just 0.4% as competition in the sector squeezes margins. Non-interest income showed the most volatility as fair value movements on financial instruments are recognised through this income statement category.

Gross loans and advances have increased 0.99% for the quarter and 4.02% over the last 12 months. Loan quality continues to improve for the banks but there is still concern around some difficult loans on the books.

Top earner for the quarter was ANZ, with a net profit after tax of $296 million, a decrease of 1.3% from the previous quarter, followed by Westpac on $197 million.

Group litigation faced by the Major Banks over alleged excessive default fees on overdrawn accounts is likely to be a long, complex and drawn out legal process.

The impact of the drought is beginning to be felt by the banking sector with Major Banks offering drought assistance packages to affected farm customers.


 

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For more information, contact:


Brett Cammell

External Communications Manager

+64 9 367 5977

+64 21 335 740 

bcammell@kpmg.co.nz

  

 

About KPMG New Zealand

 

KPMG is one of New Zealand’s leading professional services firms; specialising in Advisory, Audit and Tax services. Our firm of over 800 professionals works with a wide range of New Zealand enterprises – from SMEs, privately owned businesses, to publicly-listed companies, government organisations, and not-for-profit bodies.

 

KPMG has offices in Auckland, Wellington, Hamilton, Tauranga, and Christchurch. Globally, KPMG operates in 156 countries; employing over 152,000 people in member firms around the world.

 

The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

 

Press releases - KPMG press releases. 

FIPS Quarterly - December 2012

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Survey participants achieved a total net profit after tax of $855 million, an increase of 10.5% from the previous quarter.

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