New Zealand

Details

  • Industry: Financial Services
  • Type: Survey report
  • Date: 4/10/2013

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John Kensington 

Head of Financial Services

+64 9 367 5866

 

Graeme Edwards - Head of Audit

Graeme Edwards 

Head of Audit

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Financial Services

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

FIPS Quarterly: June 2013  

Financial Institutions Performance Survey (FIPS) - registered banks quarterly update

 

Analysis for the June 2013 quarter show net profits for our major banks to have risen by 5.4% to $1,023m. This follows a strong increase in the previous quarter, where profits increased 12.9%.

Gross loans and advances continue to show steady growth, both over the quarter and the year, with increases of 1.29% and 5.38% respectively.

 

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The net interest margin for the sector has increased by two basis points to 2.26% for the quarter, with most bank participants seeing an increase in their margin. Fixed lending rates have started to increase over the past quarter, from low levels which were driven due to intense competition.

 

Non-interest income has continued to be the main driver of the movement in profit between quarters, with fair value movements in financial instruments continuing to have large impacts on the profits in certain entities.

 

The housing market has continued to grow over the quarter, especially in Christchurch and Auckland. Christchurch is expected to continue this trend as the rebuild continues, while in Auckland, the demand-supply housing equation is still struggling to find equilibrium.

 

It is still not expected that interest rates increases will be used to help cool the market in the short term, due to their impact on inflation and exchange rates. The RBNZ is indicating it still favours the use of the macro-prudential tools, as shown by the implementation of high loan-to-value (LVR) residential lending restrictions from 1 October 2013.

 

Please contact us if you would like to hear more about this latest FIPS quarterly.

 

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