Banks: Income statement ($m) - S21

Released
30 May 2017 03:00 p.m.
Next release
01 September 2017 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Quarterly
Previous years: Quarterly:
Mar 2015 Mar 2016 Jun 2016 Sep 2016 Dec 2016 Mar 2017
Interest income ($m)
Total interest income1 5,861 5,471 5,385 5,326 5,275 5,128
Cash and deposits 116 87 80 78 64 69
Debt securities 377 354 354 315 304 287
Housing loans 2,820 2,813 2,793 2,805 2,782 2,723
Other loans 2,534 2,370 2,339 2,277 2,276 2,209
Derivative interest income -2 -144 -180 -144 -145 -141
Other interest income 16 -8 -1 -4 -7 -18
Interest expense ($m)
Total interest expense1 3,519 3,044 2,908 2,920 2,858 2,786
Deposits 2,213 1,819 1,698 1,678 1,640 1,612
Debt securities 513 542 538 531 539 547
Borrowings 330 275 265 263 250 251
Derivative interest expense 458 414 403 436 427 374
Other interest expense 5 -6 3 11 2 2
Net interest income ($m)
Net interest income1 2,342 2,427 2,478 2,406 2,417 2,342
Other income ($m)
Total other income1 777 819 771 669 717 719
Derivatives -245 -373 -83 -209 203 -184
Trading 248 374 457 183 -112 168
Other fair value adjustments 176 162 -279 60 96 120
Fees and commission 495 512 544 544 525 514
Other 103 136 128 88 3 99
Share of profit and loss of associates and joint ventures 1 8 3 5 3 2
Total operating income ($m)
Total operating income1 3,119 3,247 3,248 3,075 3,134 3,061
Operating expenses ($m)
Total operating expenses1 1,219 1,365 1,380 1,307 1,306 1,267
Personnel 634 675 690 695 700 676
Fees and commission 91 108 111 97 109 98
Other 494 582 578 515 497 494
Impairment ($m)
Total impaired asset expenses1 109 116 161 155 48 43
Individual provisions for losses on loans 66 57 83 81 24 34
Collective loan loss provisions -35 41 56 41 7 -1
Debt write-offs 92 33 34 45 31 36
Recoveries -13 -12 -11 -12 -11 -22
Other -1 -2 0 -1 -3 -4
Profit ($m)
Profit before tax1 1,791 1,765 1,708 1,613 1,780 1,752
Income tax1 502 484 480 439 499 492
Profit after tax1 1,289 1,281 1,228 1,175 1,280 1,260
Other comprehensive income after tax -44 19 53 12 85 -41
Profit including other comprehensive income 1,245 1,300 1,281 1,186 1,366 1,219
Profit attribution ($m)
To non-controlling interest1 6 4 5 4 4 4
To equity holders of the parent1 1,239 1,296 1,277 1,182 1,362 1,215
Registered banks
Number of registered banks 25 25 25 24 24 24
  1. Data may not be comparable over time due to changes in accounting standards. See background notes for more detail.

The Data: Coverage, Periodicity, and Timeliness

Coverage characteristics

Since June 2013, the Reserve Bank has conducted a monthly survey of registered banks' financial performance.

Data from 1 July 2013 in this table is sourced from the Registered Bank Income Statement Survey (ISS).

Earlier data (to provide a historical context) has been sourced from registered banks' Disclosure Statements and the Net Interest Margin Survey.

The income data presented in the tables are calculated by aggregating the consolidated information for registered banks.

The number of registered banks has varied over time. The table shows the number at the end of each quarter. For a history of banks registered in New Zealand see the list of past and present banks.

Volatility

As the data are quarterly income and expense flows they will tend to be more volatile than balance sheet data. Movements in interest rates, exchange rates, and the number of days in a quarter will all have an influence on the flows along with one-off income or expense items that occur in a single quarter.

Retail banks

For the purposes of table S20, the sub-set of retail banks are locally-incorporated registered banks, including their banking groups where applicable, with a significant proportion of both their liabilities and assets with the household sector as a counterparty.

The retail banks are: Australia and New Zealand Banking Group Ltd, Bank of Baroda (New Zealand) Limited, Bank of India (New Zealand) Limited, Bank of New Zealand, China Construction Bank (New Zealand) Limited, Commonwealth Bank of Australia, The Co-operative Bank Limited, Heartland Bank Limited, Industrial and Commercial Bank of China (New Zealand) Limited, Kiwibank Limited, Southland Building Society, TSB Bank Limited, Westpac Banking Corporation

Periodicity

Quarterly

Timeliness

Data is released approximately two months after the reference quarter.

Access by the public

Statistics release calendar

The Statistics Release Calendar is updated and released on the last working day of the month. This is a long-term plan of scheduled releases.

Integrity

Dissemination of terms and conditions under which official statistics are produced, including confidentiality of individual responses

Data are collected under Section 93 of The Reserve Bank of New Zealand Act 1989 (The Act).

The Reserve Bank of New Zealand publishes only aggregated data. Individual institutional data is confidential.

Provision of information about revisions and advance notice of major changes in methodology

Provisional data are italicised. Data are deemed provisional when a series is under review. New data, or revised data, are in bold font. Revisions are generally published when a table is next due to be updated and released. Should revisions need to be made more promptly, a note is posted on the website. Any major changes in methodology are posted on the website as a note.

Quality

Dissemination of documentation on methodology and sources used in preparing statistics

An Excel template is completed and returned each month by all survey respondents. The template includes a PDF file that specifies procedures and definitions for survey respondents.

Dissemination of registered bank statistics that support statistical cross-check and provide assurance of reasonableness

Disclosure statements published by registered banks provide checks for reasonableness. The Reserve Bank is the prudential regulator of registered banks and monitors their compliance with statutory requirements.

Comparability over time

While the most recent data (from 1 July 2013) is sourced from the ISS, to provide a historical context data from other sources has been used. This includes the Net Interest Margin Survey and publicly available Disclosure Statements. The information available from these other sources is not as detailed as that provided by the ISS.

While all the data is based on generally accepted accounting standards (GAAP) these have changed over time particularly over 2005 – 2007 when New Zealand moved to the international standards. A fuller explanation of that changeover is provided below. Consequently some of the data may not be fully comparable.

Changes to accounting standards

Between 1 January 2005 and 1 July 2007, banks in New Zealand changed accounting 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 from banks' disclosure statements.

Between 2005 and 2007 data is a combination of data reported under the two sets of accounting standards. For the 31 December 2005 quarter, 92 percent of the total assets of registered banks reported 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

Income Statement

Total interest income

The value of interest earned on interest-earning assets.

Interest from cash and deposits

Interest earned from accounts with the Reserve Bank and from deposits (other than securities) with other banks.

Interest from debt securities

Interest earned from securities that can be bought or sold during the life of the security. Debt securities include government bonds, corporate bonds, CDs, local body bonds, preferred stock, collateralised securities (such as CDOs, CMOs, GNMAs) and zero-coupon securities.

Interest from housing loans

Interest earned from loans secured by residential property (excluding for business purposes). Residential property includes houses, apartments, flats, holiday homes etc.

Interest from other loans

Interest received from non-housing loans. Includes credit card loans, unsecured loans, and business loans.

Derivative interest income

Net interest flows for hedges associated with assets. The value can be positive or negative.

Other interest income

All other interest income not included elsewhere.

Total interest expense

The value of interest incurred on interest-bearing liabilities.

Interest incurred on deposits

Interest incurred on deposits that have been placed with the bank.

Interest incurred on debt securities

Interest incurred on securities issued by the bank that can be bought or sold during the life of the security.

Interest incurred on borrowing

Interest incurred on loans supplied to the bank.

Derivative interest expense

Net interest flows for hedges associated with liabilities. The value can be positive or negative.

Other interest expense

All other interest expense incurred not included elsewhere.

Net interest income

Interest income less interest expense.

Total other income

Total income earned by the bank other than that generated from interest.

Derivative income

Derivative income that was not reported as interest. The value can be positive or negative.

Trading income

Income, other than interest income, earned from financial assets classified as held for trading. The value can be positive or negative.

Other fair value adjustments

Includes all fair value adjustments through the income statement not included elsewhere. The value can be positive or negative.

Fees and commission income

Income from customers for the provision of services. Includes credit cards, transaction/ deposit account services and credit facility related fees.

Other income

All other income not included elsewhere.

Share of profit and loss of associates and joint ventures accounted for using the equity method

Income from associates and joint ventures accounted for using the equity method.

Total operating income

Net interest income plus total other income.

Total operating expenses

Expenses incurred other than interest or on the impairment of an asset.

Personnel expenses

Expenses related to the employment of the staff of the banks.

Fees and commission expenses

Fees and commission incurred for services provided to the banks.

Other operating expenses

All other expenses not included elsewhere.

Impaired asset expenses

Amounts charged against income to provide against potential or actual loan losses. Includes write backs when potential losses don't eventuate.

Other comprehensive income

Primarily fair value movements taken directly to equity and therefore not included in profit.

Profit before tax

Profit (or loss) before deducting tax expense.

Profit after tax

Profit (or loss) after income tax expense.

Profit attributable to non-controlling interest

The share of profit in partly owned subsidiary companies that belong to the other shareholders of those subsidiaries.

Profit attributable to equity holders of the parent

Profit available to the shareholders of the registered banks.

Balance sheet

Total assets

Total assets held by banks.

Interest-earning assets

Interest-earning assets held by banks.

Total liabilities

Total liabilities held by banks.

Interest-bearing liabilities

Interest-bearing liabilities held by banks.

Equity

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

Number of registered banks

All banks operating in New Zealand must be registered with the Reserve Bank of New Zealand. The number of registered banks has varied over time. For a history of banks registered in New Zealand see the list of past and present banks.

Ratios

Return on assets

Profit after tax as a percentage of average total assets. Data has been annualised by multiplying by the number of days in the year / number of days in the quarter.

Return on equity

Profit after tax of banks incorporated in New Zealand as a percentage of their average equity. Data has been annualised by multiplying by the number of days in the year / number of days in the quarter.

Interest income to interest-earning assets

Interest income as a percentage of average interest-earning assets. Data has been annualised by multiplying by the number of days in the year / number of days in the quarter.

Interest expense to interest-bearing liabilities

Interest expense as a percentage of average interest-bearing liabilities. Data has been annualised by multiplying by the number of days in the year / number of days in the quarter.

Net interest margin

Net interest income as a percentage of average interest-earning assets. Data has been annualised by multiplying by the number of days in the year / number of days in the quarter.

Other income to total operating income

Other income as a percentage of total operating income.

Other income to total assets

Other income as a percentage of average total assets. Data has been annualised by multiplying by the number of days in the year / number of days in the quarter.

Operating expenses to total operating income

Total operating expenses as a percentage of total operating income.

Operating expenses to total assets

Total operating expenses as a percentage of average total assets. Data has been annualised by multiplying by the number days in the year / number of days in the quarter.

Impaired asset expenses to total operating income

Total impaired assets expenses as a percentage of total operating income.

The new format for our Excel data files will be rolled out to the Income statement statistics (Tables S20 and S21) on 30 May 2017.

The most notable changes in the Excel data files will be:

  • No extra columns, bold numbers, merged cells or any other formatting. This will make it easier for data users to transform the file into other ‘machine friendly’ formats such as .csv.
  • Two extra tabs – ‘Table Description’ and ‘Series Definitions’ that will contain supplementary information about the table and the data.
  • The data tab will have two extra rows: unit and series ID linked to the Series Definitions.

There will be no change to the presentation of summary data in the summary tab.

25 May 2017

Symbols and conventions

0 Value rounded to zero
- Zero or not applicable
.. Not available
bold Revised/new
italics Provisional

General notes

  • Individual figures may not sum to the totals due to rounding
  • Percentage changes are calculated on unrounded numbers
  • You are free to copy, distribute and adapt these statistics subject to the conditions listed on our copyright page.