KPMG’s Financial Institutions Performance Survey (FIPS) Bank review of 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% ($20.27 million) from 2022.

This incremental increase comes despite a 16.89% ($2.22 billion) increase in net interest income to $15.34 billion. Three main drivers negated most of the net interest income gain made; a 33.07% ($1.09 billion) decrease in non-interest income, together with an increase of 8.85% in operating expenses ($0.56 billion), and an increase in impaired asset expense of 339.30% ($0.49 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,” says John Kensington, KPMG Partner – Banking. “Despite these challenges, NPAT has remained stable with a 0.28% increase off the back of as gross lending increasing by 3.06% and margin improving 24 bps.”

“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.”

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 expenses increased by $0.05 billion (1.79%) to $2.80 billion.

For further information or to organise media interviews, please contact:

Fiona Woolley
Head of Communications & Marketing
KPMG New Zealand
+64 21 455 331


Michelle Littlejohn
Marketing Communications Senior Manager
KPMG New Zealand
+64 21 902 080