KPMG’s Financial Institutions Performance Survey (FIPS) Review of 2015 shows that New Zealand’s banking sector – underpinned by a strong economy – delivered outstanding performance.
KPMG’s Financial Institutions Performance Survey (FIPS) - Review of 2015 shows that New Zealand’s banking sector – underpinned by a strong economy – delivered outstanding performance in 2015.
Results from 2015 are being described as ‘all positive’ for New Zealand banks. As well as reaching an all-time high of $5.17 billion in net profit, the sector improved several metrics across the board.
The Banks have strengthened their position in the face of global volatility and further domestic regulation. In fact, the new LVR limits and tax rules have resulted in better quality loan books – with the proportion of loans over the 80% bracket declining from 15.72% to 13.17% throughout 2015 for the five major banks.
The real challenge, however, will be to maintain this momentum in 2016. The future brings some uncertainty; with global volatility, ongoing concern around low dairy prices, and the continued threat of a sharp housing price correction. The Survey also shows banking executives are concerned about the potential impact of the Reserve Bank’s proposed rules on outsourcing.
© 2019 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
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.