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.

While a registered bank can net a liability off against an asset under the right of set off accounting standard, the data used in these tables is on a gross basis.

For capital adequacy and equity ratios only New Zealand incorporated banks are used.

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 provides background information on General Disclosure Statements.

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 and cover a twelve month period. Balance sheet and capital adequacy data are as at the end of the period.

The number of registered banks has varied over time. The table shows the number as at the end of each quarter. For a history of banks registered in New Zealand see the list of past and present banks on this 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. During 2008 the Basel II capital adequacy framework replaced the Basel I framework.

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 ratios based on the data. Balance sheet data is available from March 1990 while reliable aggregated income data for a twelve month period is first available in March 1992.

Series definitions

Income statement definitions

Income tax expense

The amount of income tax expense for the period.

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.

Non-operating income or expenses

Income or expense items not directly related to the normal operations of the banks. Recent examples are the gains from the fair valuing of Visa shares the banks received when Visa made a public offering and additional tax charges banks incurred as a result of a review of some historical business deals.

Operating expenses

Expenses other than Interest expense, Provision for credit impairment and Tax that are incurred as part of the Banks’ normal operations. Examples are staff and deprecation expenses.

Other operating income

Income other than Interest income that is earned as part of the Banks’ normal operations. Examples are trading income and fee income.

Profit after income tax

Net Profit (or Loss) after Income tax expense.

Profit attributable to minority interests

Profit (or Loss) made by subsidiary companies that belongs to shareholders in those companies that are not shareholders in the parent company.

Profit attributable shareholders

Profit (or Loss) available to the shareholders of the parent company.

Profit before income tax

Profit (or Loss) before deducting Income tax

Profit before provision for credit impairment

Profit (or Loss) from the normal operations of the Banks before providing for credit impairment costs for the period.

Provision for credit impairment

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

Total income

The sum of Net interest income and Other operating income received for the period.

Balance sheet definitions

Average assets

The average value of total assets over the year. Calculated as an average of quarter-end totals.

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 covers all forms of funding except Subordinated debt. Includes transactional and savings accounts, term deposits, certificates of deposit and issued paper, credit card balances, 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.

Mortgage lending

Loans and advances secured by mortgages as reported by banks in their capital adequacy calculations.

Other lending

Loans and advances excluding mortgages. Includes overdrafts, credit card lending, personal loans, lease finance, commercial bills, hire purchase finance, redeemable preference share finance and other term lending, net of provisions for impairment.

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 securities, investment securities and available for sale investments.

Subordinated debt

Borrowings which rank below all other borrowing for repayment should the organisation fail.

Total assets

The sum of all assets.

Total liabilities and equity

The total of all liabilities and equity.

Total assets of banks incorporated in New Zealand

The total asset of the banks incorporated in New Zealand.

Total assets of banks incorporated overseas

The total asset of the New Zealand operations of banks that are branches of an overseas incorporated organisation. Where that organisation has a New Zealand incorporated subsidiary that is also a registered bank, that subsidiary assets are also included.

Total assets of New Zealand owned banks

The total asset of the banks whose ultimate owner(s) are based in New Zealand.

Total assets of overseas owned banks

The total asset of the banks whose ultimate owner(s) are based outside of New Zealand.

Ratio definitions

All ratio calculations are weighted averages.

Interest rate margin

Net interest income as a percentage of average interest earning or discount bearing assets.

Impaired assets / gross lending

Impaired assets as a percentage of lending before allowing for provisions.

Nonperforming loans / gross lending

Non performing loans (impaired and 90 day past due asset) as a percentage of lending before allowing for provisions. Ninety day past due assets are first available from March 1996.

Other expenses / average total assets

Other expenses as a percentage of average assets

Other expenses / total income

Other expenses as a percentage of total income.

Other income / total income

Other income as a percentage of total income.

Return on assets

Profit after income tax as a percentage of average assets.

Return on equity

Profit after income tax of banks incorporated in New Zealand as a percentage of their average equity.

Tier 1 capital ratio

Core weighted aggregated ratio for New Zealand-incorporated banks only

See the Reserve Bank's policy documents entitled Capital Adequacy Framework for a full explanation. During 2008 the banks moved to the Basel II framework.

Total capital ratio

Weighted aggregated ratio for New Zealand-incorporated banks only

See the Reserve Bank's policy documents entitled Capital Adequacy Framework for a full explanation. During 2008 the banks moved to the Basel II framework.

Year on year change in total assets

The percentage change in total assets from the previous year.

Number of registered banks

Number of organisations registered with the Reserve Bank of New Zealand as banks as at the end of the quarter. 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 changed accountings standards from New Zealand accounting standards (NZ GAAP) to New Zealand International Financial Reporting Standards (NZ IFRS). The move to NZ IFRS affects both balance sheet and income data published in the Bank disclosure tables (G) in respect of those banks. Adoption dates for banks registered over the period are listed below.

For Key information summary of locally incorporated banks (G1) and Key information summary of overseas incorporated banks (G2) tables, this reduces the comparability of individual bank data with data for previous periods, for those banks that have adopted NZ IFRS.

For the Summary of selected aggregated finical data (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