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Banks: Assets – Loans by asset quality (S50)

This data provides information on bank lending asset quality by the purpose of the loan.

Previous years: Monthly:
Oct 2020 Oct 2021 Jun 2022 Jul 2022 Aug 2022 Sep 2022 Oct 2022
Total loans ($m)
Total loans 480,199 516,370 535,081 536,339 537,785 539,708 540,860
Impaired loans 2,009 1,261 897 889 879 862 853
Loans 90 days past due but not impaired 1,139 957 1,079 1,077 1,152 1,198 1,216
Total non-performing loans 3,148 2,218 1,976 1,966 2,031 2,060 2,069
Non-performing loans ratio (%) 0.7 0.4 0.4 0.4 0.4 0.4 0.4
Individual provisions 601 387 315 310 303 297 295
Collective provisions 2,592 2,277 2,293 2,279 2,293 2,396 2,401
Housing loans ($m)
Total loans 289,557 321,555 333,535 334,287 335,194 336,147 337,073
Impaired loans 127 104 89 96 94 92 95
Loans 90 days past due but not impaired 830 668 720 714 710 704 713
Total non-performing loans 957 772 810 810 804 796 808
Non-performing loans ratio (%) 0.3 0.2 0.2 0.2 0.2 0.2 0.2
Individual provisions 26 20 21 21 22 21 21
Collective provisions 636 517 558 558 560 678 682
Personal consumer loans ($m)
Total loans 8,548 7,524 7,282 7,258 7,226 7,302 7,415
Impaired loans 11 4 3 3 3 3 3
Loans 90 days past due but not impaired 100 77 70 71 68 65 70
Total non-performing loans 112 81 73 75 71 69 73
Non-performing loans ratio (%) 1.3 1.1 1.0 1.0 1.0 0.9 1.0
Individual provisions 4 2 2 2 2 2 2
Collective provisions 424 315 280 276 274 246 246
Business loans ($m)
Total loans 109,937 114,885 121,210 121,346 122,058 123,327 123,819
Impaired loans 742 545 440 437 432 425 422
Loans 90 days past due but not impaired 134 108 80 83 91 113 128
Total non-performing loans 876 653 520 519 523 539 550
Non-performing loans ratio (%) 0.8 0.6 0.4 0.4 0.4 0.4 0.4
Individual provisions 392 305 251 247 235 234 236
Collective provisions 1,032 988 1,057 1,060 1,060 1,053 1,049
Commercial property loans ($m)
Total loans 39,421 41,943 44,252 44,278 44,418 44,658 44,637
Impaired loans 61 74 112 111 91 92 92
Loans 90 days past due but not impaired 14 21 7 6 11 13 10
Total non-performing loans 75 96 119 117 102 104 102
Non-performing loans ratio (%) 0.2 0.2 0.3 0.3 0.2 0.2 0.2
Individual provisions 26 29 56 57 36 36 39
Collective provisions 241 225 233 237 246 246 241
Other business loans ($m)
Total loans 70,517 72,942 76,958 77,068 77,640 78,669 79,182
Impaired loans 681 471 328 326 341 333 330
Loans 90 days past due but not impaired 120 86 73 76 81 101 118
Total non-performing loans 801 557 401 402 421 434 448
Non-performing loans ratio (%) 1.1 0.8 0.5 0.5 0.5 0.6 0.6
Individual provisions 367 275 195 190 199 198 197
Collective provisions 790 762 824 822 813 807 808
Agriculture loans ($m)
Total loans 61,728 61,131 60,917 61,115 61,211 60,973 60,920
Impaired loans 1,090 597 354 343 340 331 327
Loans 90 days past due but not impaired 73 103 208 207 282 314 303
Total non-performing loans 1,163 700 562 550 621 645 629
Non-performing loans ratio (%) 1.9 1.1 0.9 0.9 1.0 1.1 1.0
Individual provisions 146 54 35 33 38 33 29
Collective provisions 452 418 358 347 360 381 382
Dairy loans ($m)
Total loans 38,927 37,537 36,543 36,638 36,692 36,343 36,309
Impaired loans 923 411 256 248 246 235 227
Loans 90 days past due but not impaired 55 34 141 139 216 225 225
Total non-performing loans 978 446 397 387 462 459 452
Non-performing loans ratio (%) 2.5 1.2 1.1 1.1 1.3 1.3 1.2
Individual provisions 123 49 31 30 34 30 27
Collective provisions 342 294 216 206 212 234 234
Other agriculture loans ($m)
Total loans 22,801 23,593 24,374 24,477 24,519 24,631 24,611
Impaired loans 167 186 98 95 93 96 100
Loans 90 days past due but not impaired 18 68 66 68 66 90 77
Total non-performing loans 185 254 165 163 159 185 177
Non-performing loans ratio (%) 0.8 1.1 0.7 0.7 0.7 0.8 0.7
Individual provisions 23 4 3 3 3 3 2
Collective provisions 110 125 142 140 148 147 148
All other loans ($m)
Total loans 10,429 11,275 12,137 12,332 12,097 11,958 11,633
Total non-performing loans 40 11 12 12 12 12 8
Non-performing loans ratio (%) 0.4 0.1 0.1 0.1 0.1 0.1 0.1
Individual provisions 33 7 6 6 6 6 6
Collective provisions 49 39 40 39 39 37 42

Household series break

31 May 2022

In April 2022, a registered bank reclassified lending from Households - Personal consumer to Financial institutions, totalling approximately $186m. Approximately $183m of Household deposits have also been reclassified.

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


Publication of long run non-performing loan ratios

29 April 2022

Today’s release of the S50 Loans by asset quality table includes an additional data file containing long run non-performing loan ratios dating back to December 2008.

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

The data: coverage, periodicity and timeliness

Coverage characteristics

We source data from our 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
  • S36 Banks: Assets – Business loans by product
  • S37 Banks: Assets – Agriculture loans by product
  • S40 Banks: Liabilities – Deposits by sector
  • S41 Banks: Liabilities – Deposits by industry
  • S50 Banks: Assets – Loans by asset quality

Most data starts from 31 December 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

We publish data 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. We update it and release it 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

We collect data under Sections 36 and 93 of the Reserve Bank of New Zealand Act (1989).

We publish aggregated data. Individual institutional data is confidential.

Read the Reserve Bank of New Zealand Act 1989

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

We generally publish revisions when we are next due to update and release the table. Should we need to make revisions more promptly, we will post a special note. We post any major changes in methodology as a special note.

Quality

Dissemination of documentation on methodology and sources used in preparing statistics

The survey template and definitions are available.

Go to the Surveys page

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

Registered banks publish disclosure statements that offer checks for reasonableness.

Assets

Cash (notes and coin)

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

Deposits (with depository institutions)

Deposits are amounts that 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 that 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 one 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 that 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 and 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 and advances’ as reported in Disclosure Statements.

Securities purchased under agreement to resell

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

Shares and 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 and 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 everyday 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; that is, 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 one 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 ( ≤ one year)

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

Subordinated debt securities ( > one 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 ( > one year)

All other debt securities that have an original term to maturity of greater than one 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 us).

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 wellbeing 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; for example, 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 that is not for their normal business purpose.

Personal consumer loans

Personal or consumer loans that 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 that are fully secured by residential mortgage
  • loans to non-financial businesses that 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 and interest

Loans that have scheduled principal repayment; for example, 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 cannot 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; for example, 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 that 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 cannot 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 and 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 and 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.

Symbols and conventions for summary table

Symbol or convention Definition
0 Zero or value rounded to zero
- Not applicable
.. Not available
bold Revised/new
italics Provisional
Light grey 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.