New Zealand

Details

  • Industry: Financial Services
  • Type: Survey report
  • Date: 19/07/2013

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John Kensington

John Kensington 

Head of Financial Services

+64 9 367 5866

 

Matt Prichard

Matt Prichard 

Head of Audit

+64 9 367 5846

Financial Services

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

FIPS quarterly - March 2013  

Financial Institutions Performance Survey - Registered Banks quarterly update

 

Analysis for the March 2013 quarter show net profits have risen by 12.9% to $971 million. This follows a strong increase in the previous quarter, where profits increased 11%.

Gross loans and advances continue to show good growth both for the quarter and for the year, with increases of 1.08% and 4.87% respectively.

 

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The quality of the banks’ loan portfolios continues to improve as legacy impaired loans from the Global Financial Crisis have been realised or returned to ‘good book' and the current low interest rate environment makes loan compliance easier.

 

The net interest margin for the sector has decreased by 4 basis points to 2.24% showing that margins are still being impacted by the intense competition in the market.

 

The non-interest income increase is largely a result of favourable fair value movements in certain survey entities, a trend we also saw in the prior quarter.

Concerns about the housing market being overheated in the Auckland and Christchurch areas still feature in the news.

 

 The RBNZ is not expected to use higher interest rates to “cool” down the housing market and its potential impact on inflation and the economy generally but rather has indicated it favours the use (if necessary) of macro-prudential tools.

 

In the quarter the fair pay on fees initiative gathered further pace with the announcement of an initial case to be lodged.

 

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

 
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