FIPS Review of 2014 provides an in-depth analysis on the performance of New Zealand’s registered banks, major finance companies and savings institutions with balance dates between 1 October 2013 and 30 September 2014. We partner with and work alongside Massey University for the data collection and analysis.

• Profits rose 20.41% across the banking industry in 2014, with an increase in lending assets of 4.85%. 2014 profits reached an all-time record high of $4,838 million. Return on assets rose to 1.17%, higher than the 1.08% level before the global financial crisis (GFC).
• Return on equity has improved from 14.20% in 2013 to 16.13%. Impaired asset expenses reduced by 47.43% to $264.9 million down from $503.9 million in 2013. This is now the fifth consecutive year impaired asset expenses have declined.
  
• Within the sector, competition remains intense over 2014 with banks offering more creative incentives such as TV’s, IPad’s, cash payments, or the settling of change over break fees.
  
• The theme of the year was that a robust Banking Sector is providing the stability and funding to help grow the New Zealand economy.
  
• The housing sector, especially Auckland and Christchurch, has fuelled a large part of the sectors growth representing around 53% of business.
  
• The analysis of “Big Data” offers banks greater opportunities in 2015 with the potential to greatly improve business profitability and relationships with customers.