Financial Institutions Performance Survey: Review of 2014

Financial Institutions Performance Survey 2014

FIPS Review of 2014 provides an in-depth analysis on the performance of NZ’s registered banks, major finance companies and savings institutions.

John Kensington - KPMG NZ - Partner

Partner - Audit

KPMG in New Zealand

man pointing at dotted graph screen

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.

The findings from the survey reveal:

  • 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.

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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