Banks: Income statement ($m) - S21

Special note: New presentation of Excel data files

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

Data files

Download the historical Banks: Income statement - S21 (1991-current) (XLS 69.5 KB)

	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

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.
Periodicity	Quarterly
Timeliness	Data is released approximately two months after the reference quarter.
Access by the public
Statistics release calendar	The Statistics Release Calendar provides a long-term plan of scheduled releases. It is updated and released on the first working day of the month.
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. This applies to the summary table only and not excel files. 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 for summary table

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

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.