Banks: Assets – Loans by asset quality (S50)

This data provides information on bank lending asset quality by the purpose of the loan.
Released
23 December 2021 03:00 p.m.
Next release
31 January 2022 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Monthly
Previous years: Monthly:
Nov 2019 Nov 2020 Jul 2021 Aug 2021 Sep 2021 Oct 2021 Nov 2021
Total loans ($m)
Total loans 472,344 483,508 509,971 510,420 513,217 516,370 520,172
Impaired loans 2,095 1,894 1,506 1,417 1,308 1,261 1,130
Loans 90 days past due but not impaired 816 1,085 931 972 980 957 979
Total non-performing loans 2,910 2,979 2,437 2,389 2,288 2,218 2,108
Non-performing loans ratio (%) 0.6 0.6 0.5 0.5 0.4 0.4 0.4
Individual provisions 444 555 484 392 382 387 362
Collective provisions 1,728 2,533 2,294 2,275 2,289 2,277 2,242
Housing loans ($m)
Total loans 271,921 292,645 315,889 317,021 319,231 321,555 323,888
Impaired loans 140 126 117 114 117 104 102
Loans 90 days past due but not impaired 470 788 696 694 679 668 673
Total non-performing loans 610 914 813 807 796 772 774
Non-performing loans ratio (%) 0.2 0.3 0.3 0.3 0.2 0.2 0.2
Individual provisions 30 25 20 20 21 20 20
Collective provisions 299 615 565 565 530 517 506
Personal consumer loans ($m)
Total loans 11,075 8,701 8,026 7,574 7,409 7,524 7,803
Impaired loans 24 11 4 4 4 4 3
Loans 90 days past due but not impaired 92 94 75 75 75 77 78
Total non-performing loans 116 105 80 79 79 81 81
Non-performing loans ratio (%) 1.1 1.2 1.0 1.0 1.1 1.1 1.0
Individual provisions 8 3 3 2 2 2 2
Collective provisions 345 413 337 335 317 315 313
Business loans ($m)
Total loans 116,117 109,797 111,806 112,579 113,415 114,885 115,961
Impaired loans 444 663 744 673 555 545 487
Loans 90 days past due but not impaired 152 120 87 106 112 108 89
Total non-performing loans 596 783 830 779 667 653 576
Non-performing loans ratio (%) 0.5 0.7 0.7 0.7 0.6 0.6 0.5
Individual provisions 152 343 373 304 294 305 284
Collective provisions 719 1,013 884 908 968 988 986
Commercial property loans ($m)
Total loans 38,352 39,425 41,104 41,460 41,846 41,943 42,484
Impaired loans 58 62 75 75 75 74 74
Loans 90 days past due but not impaired 19 18 11 24 29 21 10
Total non-performing loans 77 80 85 99 104 96 85
Non-performing loans ratio (%) 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Individual provisions 18 23 30 30 29 29 29
Collective provisions 145 238 215 219 222 225 220
Other business loans ($m)
Total loans 77,765 70,373 70,702 71,119 71,568 72,942 73,478
Impaired loans 386 601 669 598 480 471 412
Loans 90 days past due but not impaired 133 103 76 82 83 86 79
Total non-performing loans 519 703 745 680 563 557 491
Non-performing loans ratio (%) 0.7 1.0 1.1 1.0 0.8 0.8 0.7
Individual provisions 134 320 343 274 265 275 255
Collective provisions 574 774 669 689 747 762 765
Agriculture loans ($m)
Total loans 62,787 61,701 61,585 61,528 61,288 61,131 60,941
Impaired loans 1,390 1,053 626 611 617 597 528
Loans 90 days past due but not impaired 100 82 71 96 113 103 138
Total non-performing loans 1,491 1,136 697 707 730 700 666
Non-performing loans ratio (%) 2.4 1.8 1.1 1.1 1.2 1.1 1.1
Individual provisions 168 148 78 55 55 54 50
Collective provisions 334 447 466 429 431 418 403
Dairy loans ($m)
Total loans 40,617 38,849 38,046 38,011 37,719 37,537 37,364
Impaired loans 1,218 908 456 432 422 411 360
Loans 90 days past due but not impaired 68 64 42 64 36 34 69
Total non-performing loans 1,286 972 498 496 458 446 429
Non-performing loans ratio (%) 3.2 2.5 1.3 1.3 1.2 1.2 1.1
Individual provisions 157 126 74 51 50 49 46
Collective provisions 262 337 328 288 309 294 279
Other agriculture loans ($m)
Total loans 22,170 22,853 23,539 23,518 23,569 23,593 23,577
Impaired loans 172 146 170 180 195 186 168
Loans 90 days past due but not impaired 33 18 29 31 78 68 69
Total non-performing loans 205 164 199 211 272 254 236
Non-performing loans ratio (%) 0.9 0.7 0.8 0.9 1.2 1.1 1.0
Individual provisions 11 22 4 4 5 4 4
Collective provisions 71 110 138 140 122 125 124
All other loans ($m)
Total loans 10,445 10,663 12,665 11,718 11,874 11,275 11,578
Total non-performing loans 97 41 17 17 16 11 11
Non-performing loans ratio (%) 0.9 0.4 0.1 0.1 0.1 0.1 0.1
Individual provisions 86 36 10 10 11 7 7
Collective provisions 31 46 42 39 43 39 35

The data: coverage, periodicity, and timeliness

Coverage characteristics

Data is sourced from the Reserve Bank’s Bank Balance Sheet Survey.

  • S10 Banks: Balance sheet
  • S30 Banks: Assets – Loans by sector
  • S31 Banks: Assets – Loans by purpose
  • S32 Banks: Assets – Loans by product
  • S33 Banks: Assets – Loans fully secured by residential mortgage by repricing
  • S34 Banks: Assets – Loans and Repos by industry
  • S35 Banks: Assets – Loans by business size
  • S40 Banks: Liabilities – Deposits by sector
  • S41 Banks: Liabilities – Deposits by industry
  • S50 Banks: Assets – Loans by asset quality

Most data starts in 31/12/2016 when the Bank Balance Sheet Survey replaced the Standard Statistical Return (SSR). However, some data has been backdated to provide long-run consistent data. The back series has been estimated using data from the SSR. Asset quality data starts from March 2018.

Data is reported at market values, where applicable, and as at the end of the reporting period.

Data covers assets and liabilities denominated in both NZ dollars and foreign currency. Assets and liabilities denominated in foreign currency are converted into New Zealand dollars in accordance with NZ GAAP.

Periodicity and Timeliness

Data is published on the last working day of the month.

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.

View the Statistics Release Calendar.

Integrity

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

Data are collected under Sections 36 and 93 of The Reserve Bank of New Zealand Act (1989).

The Reserve Bank publishes aggregated data. Individual institutional data is confidential.

Find out more about the Reserve Bank Act 1989.

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

Revisions are generally published when the table is next due to be updated and released. Should revisions need to be made more promptly, a note is posted on the website as a ‘special note'.

Any major changes in methodology will be posted as a special note.

Quality

Dissemination of documentation on methodology and sources used in preparing statistics

A copy of the survey template and definitions is available from our Surveys page.

Go to the Surveys page.

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

Disclosure statements published by registered banks offer checks for reasonableness.

Assets

Cash (notes & coin)

All currency held by registered banks. Includes both notes and coins issued or authorised by the Reserve Bank of New Zealand (RBNZ) and all foreign currency notes and coin held that has been issued or authorised by offshore central banks or governments.

Deposits (with depository institutions)

Deposits are amounts which are redeemable or withdrawable from another bank or financial institution and are not debt securities or held as available for sale.

Demand deposits

Demand balances are amounts which are redeemable or withdrawable from another bank or financial institution on demand (balances are on call) and are not debt securities or held as available for sale.

Other deposits

Other deposits comprise all claims, other than demand deposits, that are represented by evidence of deposit. Includes all time or term deposits that have a maturity of greater than 1 day and also includes cash collateral placed in relation to derivative trades.

Debt securities

Debt securities are negotiable instruments serving as evidence of a debt; can be bought or sold between two parties and have basic terms defined, such as notional amount (amount borrowed), interest rate and maturity/renewal date. Debt securities include government bonds, corporate bonds, CDs, local body bonds, preference stock, collateralised securities and zero-coupon securities. Includes both Available for sale and Trading securities.

Available-for-sale securities

Available for sale securities that are non-derivative financial assets that are designated as available for sale.

Trading securities

Trading securities are financial instruments acquired principally for selling in the short-term or securities that are part of a portfolio which is managed for short term profit-taking. Trading securities are held at fair value with gains and losses being recorded in profit or loss in accordance with NZ GAAP.

Loans & advances

Loans and advances (or receivables) are financial assets with fixed or determinable payments that are not quoted in an active market. Loans are financial assets that (1) are created when a creditor lends funds directly to a debtor, and (2) are evidenced by non-negotiable documents.

Other net adjustments for loans and advances

Adjustments currently included in ‘Net loans & advances’ as reported in Disclosure Statements.

Securities purchased under agreement to resell

Securities purchased under agreement to re-sell with counterparties (including with the RBNZ).

Shares & other equity investments

Shares are referred to as equity and represent ownership of part of a company. Shares can be listed, unlisted or units in investment funds.

Derivatives in an asset position

Derivatives are instruments that derive their value from an underlying asset, an underlying liability, an index, or reference rate. Derivatives in an asset position are contracts where the market value of the closing position is positive at the reporting date.

Other assets

All other assets not classified including insurance assets, accounts receivable, dividends receivable, tax assets, property plant & equipment, goodwill and intangibles.

Liabilities

Deposits

Deposits are standard, non-negotiable contracts open to the public that allow the placements of variable amounts of funds and the later withdrawal. Deposits exclude any debt securities but include redeemable shares issued by building societies to customers

Transaction balances

These include balances where the purpose of the account is primarily for making transactions or "every day" banking by customers. Balances are on call.

Savings balances

These include balances where the purpose of the account is primarily for saving. For some balances disincentives may apply if used for transaction purposes i.e. a “penalty” may apply such as loss of bonus interest. Balances are on call.

Term deposit balances

Customer time or term deposits with a maturity of greater than 1 day.

Other net adjustments for deposits

Adjustments currently included in ‘Total deposits’ as reported in Disclosure Statements.

Debt securities (issued)

Debt securities are negotiable instruments serving as evidence of a debt; can be bought or sold between two parties and have basic terms defined, such as notional amount (amount borrowed), interest rate and maturity/renewal date. Debt securities issued include CDs, preferred stock, collateralised securities (such as CDOs, CMOs, GNMAs) and zero-coupon securities. Includes Short-term, Subordinated, and Other long-term debt securities.

Debt securities issued comprises securities issued in New Zealand and issued offshore.

Short-term debt securities ( ≤ 1 year)

Debt securities that have an original term to maturity of 1 year or less.

Subordinated debt securities ( > 1 year)

Tradable subordinated debt securities (not loans) as defined under the Basel Capital Adequacy framework including those held by parents and related parties.

All other long-term debt securities ( > 1 year)

All other debt securities that have an original term to maturity of greater than 1 year.

Other net adjustments for debt securities

Adjustments currently included in ‘Total debt securities’ as reported in Disclosure Statements.

Borrowings

Borrowing is a loan to the bank. A loan is a financial liability created when funds are borrowed directly from a lender and are evidenced by documents that are not negotiable. Includes Subordinated and Other borrowed funds. Also includes Securities sold under agreement to repurchase.

Subordinated loans

Subordinated loans as defined under the Basel Capital Adequacy framework.

Securities sold under agreement to repurchase

Securities sold under agreements to repurchase with banks (including with the RBNZ).

All other borrowed funds

All other borrowing from parents (except subordinated borrowings and subordinated debt securities), cash collateral received in relation to derivative trades, and all other funding not classified as deposits or securities.

Other net adjustments for borrowings

Adjustments currently included in ‘Total borrowing’ as reported in Disclosure Statements.

Derivatives in a liability position

Derivatives are instruments that derive their value from an underlying asset, an underlying liability, an index or reference rate. Derivatives in a liability position are contracts where the market value of the closing position is negative at the reporting date.

Other liabilities

All liabilities not already classified.

Equity

Ordinary shares

Ordinary share capital on issue.

Preference shares

Preference shares have a priority over dividend payments and to the assets of the reporting company.

Reserves

Profits that are not distributed to shareholders as dividends but are kept as a reserve for specific purposes.

Retained earnings

Profits that are not distributed to shareholders as dividends but are reinvested in the bank.

Other

Any equity not separately identified including branch capital.

Sector

Residents

Persons, companies and other entities that are ordinarily domiciled or have a principal centre of economic interest in New Zealand.

Financial businesses

This sector consists of resident financial institutions that mainly pursue financial services.

The major subsectors are:

  • Reserve Bank of New Zealand
  • Registered banks
  • Other depository institutions
  • Other financial institutions

Non-financial businesses

Non-financial businesses consist of resident business enterprises that produce goods and non- financial services to sell at competitive market prices that are sufficient to generate a profit or surplus in the long term. Includes residential investor property use loans.

General government

General government comprises:

  • Central government
  • Local government

Central government

Central government includes organisational units of central government responsible for functions such as taxation, law and order, defence, and those responsible for advancing the economic and social well-being of the country in other ways.

Local government

This sector consists of territorial authorities and regional councils, as well as other non-market units and non-profit institutions they control. They are responsible for functions such as town planning, providing local infrastructure, libraries, museums and sports grounds.

Non-profit institutions serving households (NPISH)

This sector includes organisations that provide goods or services to their members, or to other households, without charge or at prices that are not economically significant.

The main kinds of organisations included are:

  • Community and social groups
  • Philanthropic organisations

Households

This sector includes individuals, family trusts and estates.

Non-residents

Persons, companies and other entities that are ordinarily domiciled or have a principal centre of economic interest in a country other than New Zealand. Includes Financial institutions abroad, Sovereign abroad, Non-financial business abroad, and Households abroad.

Sovereign abroad

Non-New Zealand sovereigns, Supranational, and quasi-sovereign entities.

Financial institutions abroad

This sector consists of non-resident financial institutions that mainly pursue financial services.

Non-financial business abroad

Includes non-resident business enterprises that produce goods and non-financial services to sell at competitive market prices that are sufficient to generate a profit or surplus in the long term.

Households abroad

This sector includes individuals, family trusts and estates ordinarily domiciled or have a principal centre of economic interest in a country other than New Zealand.

Other abroad

All other non-resident entities not already classified.

Loan purpose

Housing

Housing comprises:

  • Owner occupier property use
  • Residential investor property use

Owner occupier property use

Owner occupiers are borrowers who own or are in the process of buying or building the house or flat they will live in as their principal place of residence. An owner can occupy more than one property e.g. a family home and a holiday home. Only households can have owner occupier property use loans.

Residential investor property use

Investors are entities or persons borrowing for the purpose of building or purchasing residential property to rent. This includes ‘Mum and dad’ investor loans and any person(s) that have a separate residential investor property use loan which is not for their normal business purpose.

Personal consumer loans

Personal or consumer loans which are not fully secured on residential property including overdrafts, credit cards, and term loans.

Business loans

Business loans comprise:

  • Loans (for business use) to non-financial businesses which are fully secured by residential mortgage.
  • Loans to non-financial businesses which not fully secured by residential mortgage

Excludes agriculture loans.

Commercial property

Includes:

  • Investment property
  • Property development - commercial
  • Property development - residential

Investment property

Includes primarily commercial property for capital value appreciation and associated cash flows.

Property development - commercial

Includes primarily construction of office, retail or other commercial developments.

Property development - residential

Includes primarily residential sub-division and residential apartment developments.

Other business

All other business loans that are not for commercial property. Excludes agriculture loans.

Agriculture loans

Business loans to the agriculture industry (ANZSIC06) including:

  • Dairy farming
  • Sheep, beef cattle and grain farming
  • Horticulture
  • Other agriculture on farm

Does not include any loans to the agriculture industry for residential investor property use.

Financial institutions loans

Loans to financial institutions. Does not include any loans to financial institutions for residential investor property use.

Other loans

All other loans to general government. non-profit institutions serving households.

Loan product

Interest only

Loans that have no scheduled principal repayment. This does not include revolving credit loans that have a fixed limit or revolving credit loans that have a scheduled reducing limit.

Revolving credit

Revolving credit loans are loans that have a fixed limit but no scheduled principal repayment. Such loans can be redrawn and paid back repeatedly within approved limits without further credit approval. This does not include revolving credit loans that have a scheduled reducing limit.

Principal & interest

Loans that have scheduled principal repayment, e.g. table loans. This includes revolving credit loans that have a scheduled reducing limit.

Overdraft (personal consumer)

Available balance is below zero (overdrawn).

Credit cards (personal consumer)

Outstanding loans originated and still managed via credit cards.

Term loans (personal consumer)

Loan that is repaid in regular payments over a set period of time. Does not include term loans fully secured by residential property.

All other loans

All other loans and advances not included elsewhere.

Loans fully secured by residential mortgage

Loans fully secured by residential mortgage

Loans secured by a mortgage over a residential property. Excludes loans cross collateralised between residential property and other assets where the share attributable to the residential property can not be identified.

Owner occupier property use

Owner occupiers are borrowers who own or are in the process of buying or building the house or flat they will live in as their principal place of residence. An owner can occupy more than one property e.g. a family home and a holiday home.

Residential investor property use

Investors are entities or persons borrowing for the purpose of building or purchasing residential property to rent. This includes ‘Mum and dad’ investor loans and any person(s) that have a separate residential investor property use loan which is not for their normal business purpose.

Business loans secured by residential property

Business lending where the only security type is a residential mortgage loan. The borrower declares that the loan is for business purposes as part of the loan application. Excludes loans cross collateralised between residential property and other assets where the share attributable to the residential property can not be identified.

Loan repricing

Floating

Floating rate loans where the interest rate can or does change the following business day and offset loans.

Fixed

All other loans that are not floating or non-interest bearing, which are reporting in the bucket in which the interest rate resets. Loans are reported on a non-amortised basis i.e. the fully outstanding loan principal is reported in the time bucket in which the loan’s interest rate is re-priced or reset.

ANZSIC

ANZSIC 2006

The Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006 is used to compile and analyse industry statistics in New Zealand and Australia.

Data for loans by (ANZSIC) industry (S34) will not align with loans by sector (S30) or purpose (S31). For example:

  • Loans by (ANZSIC) industry (S34) includes securities purchased under agreement to resell (repos).
  • Loans to the Public administration and safety industry does not include crown entities (S34). Loans to crown entities are included in the General government sector (S30).
  • Loans to ACC and EQC are included in the Insurance industry (S34). Loans to ACC and EQC are included in the General government sector (S30).
  • Loans to District Health Boards (DHBs) are included in the Health care & social assistance industry (S43). Loans to DHBs are included in the General government sector (S30).
  • Loans to the Agriculture industry includes loans for residential investor property use and loans to crown entities involved in agriculture (S34). The loans for Agriculture purposes does not include residential investor property use or loans to crown entities involved in agriculture (S31).
  • Loans to the Rental, hiring & real estate surveys includes loans for Residential investor property use (S34).

Loans by business size

Loans by business size

Business loans are categorised by the size of their business turnover. Further guidance on loans by business size can be found in the Bank Balance Sheet definitions. Business loans by size is a breakdown of business loans in Table S31.

Small

Turnover less than $1m.

Medium

Turnover greater than $1m and less than $50m.

Large

Turnover greater than $50m.

SME

Small and medium enterprise loans.

Loans by asset quality

Total loans

Gross loans and advances.

Impaired loans

A loan or advance is impaired when one or more events occur that cause a lender to believe they will not receive all of the future principal and interest repayments that have been contractually agreed with the borrower. These events could include: the borrower entering significant financial difficulty or bankruptcy; the borrower failing to make repayments as required and the loan becoming past due; the contractual agreement between the lender and borrower being restructured or amended; the borrower breaching covenants or other terms and conditions that have been contractually agreed with the lender.

Loans 90 days past due but not impaired

A loan or advance is past due when the borrower fails to make a payment (of principal and/or interest) when that payment was contractually due. When a borrower has failed to make repayments on a loan for 90 or more days, that loan is 90 days past due.

Total non-performing loans

The total value of loans and advances that are 90 days past due plus impaired loans.

Non-performing loans ratio (%)

Ratio of total non-performing loans to total loans.

Individual provisions

An allowance for expected credit impairment loss on individual loans and advances where the borrower is having difficulty servicing the loan, or where a loan or advance becomes non-performing.

Collective provisions

An allowance for anticipated credit impairment loss from groups of loans and advances.

Difference to other published tables

The table S50 Loans by Asset Quality will not align with series published in table S31 Loans by Purpose due to business loans fully secured by residential property not being collected with a detailed Asset Quality breakdown. Business loans fully secured by residential property are published in Table S33 Loans fully secured by residential mortgage, by time until next repricing.

Other

Foreign currency (FX)

The New Zealand dollar equivalent of foreign currency balances.

Publication of new web tables – S35 and S50

30 November 2021

On the 30th November 2021, the RBNZ began publishing the following new tables:

  • S35 Banks: Assets – Loans by business size
  • S50 Banks: Assets – Loans by asset quality

Data for these tables has been sourced from the bank balance sheet survey.

If you have any questions please contact [email protected].

Symbols and conventions for summary table

0 Zero or value rounded to zero
- 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
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