John Kensington - KPMG NZ - Partner

Partner - Audit

KPMG in New Zealand


KPMG’s survey of the banking sector results for 2023 shows that the sector’s growth appears to have plateaued, with a net profit after tax (NPAT) $7.21 billion for 2023 – up just 0.28% from 2022.

This incremental increase comes despite a 16.89% increase in net interest income to $15.34 billion. Three main drivers negated most of the net interest income gain made; a 33.07% decrease in non-interest income, together with an increase of 8.85% in operating expenses, and an increase in impaired asset expense of 339.30%.

Read the full insights in our latest report:  KPMG’s Financial Institutions Performance Survey (FIPS) Bank review of 2023.

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Financial Institutions Performance Survey (FIPS):

Banks - Review of 2023

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Key figures

  • Net profit after tax increased by $20.27 million (0.28%) to $7.21 billion;
  • Net interest income increased by $2.22 billion (16.89%) to $15.34 billion;
  • Non interest income decreased by $1.09 billion (33.07%) to $2.21 billion;
  • Operating expenses (including amortisation) increased by $0.56 billion (8.85%) to $6.91 billion;
  • Net interest margin increased 24 bps to 2.34%;
  • Impaired asset expense increased by $0.49 billion (339.30%) to $0.64 billion; and
  • Tax expense increased by $0.05 billion (1.79%) to $2.80 billion.

2023 has proven to be a challenging year for the sector, with participants remaining cautious as they navigate the difficult economic conditions ahead and as they aim to strike a balance between opportunity and risk. Keeping customer care at the fore while navigating the challenges of the year ahead will be important to maintain and build trust in the banking sector. It will also be interesting to watch whether New Zealanders and New Zealand businesses can maintain their resilience.

John Kensington
KPMG Partner - Banking

A snapshot of 2023

KPMG’s Financial Institutions Performance Survey (FIPS) reports have provided insights into New Zealand’s financial services sector for over 30 years.  Each edition presents industry commentary and analysis on the performance of New Zealand registered banks, together with a range of topical articles from industry experts, regulators and our own business leaders.