Supporting information:

Series description for Registered banks: summary of selected aggregate financial data (G3)

Interpretation of the table

The income and balance sheet data presented in the table are calculated by aggregating the consolidated information for registered banks and their banking groups. Data for registered banks that are subsidiaries of other registered banks will be included in the consolidated figures of the parent and are therefore excluded from the aggregations.

Data are on a gross basis. Where a registered bank has applied a right of set off the Reserve Bank has used the gross amount in calculating the data in the table.

Capital adequacy data are for New Zealand-incorporated banks only.

Since 1996, data have been sourced from publicly available General Disclosure Statements of registered banks. The March 1996 Bulletin article New disclosure regime for registered banks explains why General Disclosure Statements are now used.

Data for the pre-1996 period is derived from information that registered banks were required to send to the Reserve Bank under section 93 of the Reserve Bank of New Zealand Act. The individual bank data supplied under section 93 is protected by section 105 of the Act.

Data are in millions of New Zealand dollars.

Registered banks have different annual balance dates. Income data are derived from quarterly disclosure statements to cover the twelve months to 31 December. Balance sheet and capital adequacy data are as at 31 December.

The number of registered banks has varied over time. The table shows the number as at 31 December each year. A history of bank registrations is available elsewhere on our website.

Information supplied by registered banks is required to meet Generally Accepted Accounting Standards. Changes to accounting standards and to the way banks conduct their business have impacted over time on the amounts shown for each series. The adoption of international accounting standards by registered banks between 2005 and 2007 may also affect the comparability of amounts shown in these series. The specific accounting policies of each registered bank are available in the statement of accounting policies included in General Disclosure Statements every six months.

The Reserve Bank supplies selected aggregated data on registered banks to the OECD. This data is published in Bank Profitability - Financial Statements of Banks (data begins in 1990). You can order a copy of this publication from the OECD website.

The Reserve Bank has published a survey of developments in the banking sector in the June Bulletin each year from 1992 until 2004. Since then, commentary on banking and financial sector developments has been included in the Reserve Bank’s Financial Stability Report.

Format of the table

Table G3 has three sections: income data in the form of an income statement; balance sheet, and capital adequacy data. The table is also split between that data provided directly to the Reserve Bank up to December 1995 and the data sourced from General Disclosure Statements from 1996 onwards.

Series definitions
Income statement

Bad and doubtful debts expense

The amount related to bad and doubtful debts charged against income over the period. This covers allocations to provisions, direct write-off and recoveries.

Distributed profit

Amount paid to shareholders during the period, including repatriation of profit to the head offices of overseas-incorporated banks.

Interest expense

Interest Expense includes interest expense incurred on deposits and other borrowings, and other interest bearing liabilities.

Interest income

Interest Income includes interest income earned from loans and advances, securities and other interest bearing assets.

Net interest income

Interest income less interest expense, before charge for bad and doubtful debts.

Net profit after tax

Net Profit (or Loss) after tax expense.

Non interest expense

All other expenses except Interest Expense, Bad and Doubtful Debts Expense and Tax, but including goodwill write-off and expenses that are unusually large and/or non-recurring.

Non interest income

All other income, except interest income, including income items that are unusually large and/or non-recurring.

Profit before tax

Profit (or Loss) after deducting Non Interest Expense and Bad and Doubtful Debts Expense from Total Income.

Profit before tax and bad and doubtful debts expense

Profit (or Loss) before Bad and Doubtful Debts Expense, after deducting Non Interest Expense from Total Income.

Retained profit

Undistributed profit after tax retained in the business.

Tax

The amount of tax expense for the period.

Total income

The sum of net interest income and non interest income received for the period.

Balance sheet

Average assets

The average value of total assets over the year. Since 1994, calculated as an average of quarter-end totals. From 1990 to 1993, calculated as the average of the total assets at beginning and end of the year.

Balances with other financial institutions

Deposits and placements with other financial institutions.

Cash and balances with Central Bank

Cash or items readily convertible into cash plus claims on the Reserve Bank of New Zealand.

Deposits and other borrowings

Deposits and Other Borrowings cover all forms of funding including transactional and savings accounts, term deposits, certificates of deposit and issued paper, credit card balances, subordinated debt, non interest bearing deposits and amounts due to related parties.

Equity

Shareholders’ capital including ordinary capital, retained earnings, perpetual preference shares, other reserves and head office accounts of overseas-incorporated banks.

Loans and advances

Loans and advances includes overdrafts, credit card lending, housing loans, personal loans, lease finance, commercial bills, hire purchase finance, redeemable preference share finance and other term lending, net of provisions for bad and doubtful debts.

Other assets

All other assets, including amounts due from related parties, goodwill and unrealised gains on derivative financial instruments.

Other liabilities

All other liabilities, including unrealised losses on derivative financial instruments.

Securities

Securities include trading and investment financial instruments.

Total assets

The sum of all assets.

Total liabilities and equity

The total of all liabilities and equity.

Capital adequacy

Applies to New Zealand-incorporated banks only.

See the Reserve Bank's policy document BS2 entitled Capital Adequacy Framework for a full explanation of the data series.

Number of registered banks

Number of organisations registered with the Reserve Bank of New Zealand as banks as at 31 December. For a history of banks registered in New Zealand see the list of past and present banks on this website.

Adoption of IFRS

Between 1 January 2005 and 1 July 2007, banks in New Zealand have changed their accountings standards from being based on New Zealand accounting standards (NZ GAAP) to being based on New Zealand International Financial Reporting Standards (NZ IFRS). The move to NZ IFRS affects both balance sheet and income data published in the G tables in respect of those banks. Banks’ NZ IFRS adoption dates are listed below.

For Tables G1 and G2, this reduces the comparability of individual bank data with data for previous periods, for those banks that have adopted NZ IFRS.

For Table G3, the aggregated balance sheet and income data reported between 2005 and 2007 are a combination of data reported under the two sets of accounting standards. For the 31 December 2005, 92 percent of the total assets of registered banks reported in Table G3 were held by banks using NZ IFRS.

Dates from which banks adopted NZ IFRS are:

Date:	Banks adopting NZ IFRS:
1 January 2005	The Hong Kong and Shanghai Banking Corporation Limited
1 July 2005	ASB Bank Limited Commonwealth Bank of Australia
1 October 2005	ANZ National Bank Limited Bank of New Zealand Westpac Banking Corporation
1 January 2006	Rabobank Nederland Rabobank New Zealand Limited
1 January 2007	ABN AMRO Bank NZ Citibank NZ Deutsche Bank AG Kookmin Bank
1 April 2007	TSB Bank Limited The Bank of Tokyo-Mitsubishi UFJ
1 July 2007	Kiwibank Limited