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Banks: Income statement (S21)

This data is a detailed representation of the income and expenditure flows of banks in New Zealand.

Previous years: Quarterly:
Mar 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022
Interest income ($m)
Total interest income1 5,229 4,152 4,124 4,094 4,355 4,638
Cash and deposits 66 24 26 28 65 98
Debt securities 234 167 164 164 172 187
Residential mortgages2 2,843 2,411 2,352 2,315 2,376 2,508
Business loans2 1,765 1,365 1,368 1,396 1,501 1,599
All other loans2 410 276 266 212 254 247
Derivative interest income -78 -80 -35 -6 5 19
Other interest income -12 -11 -19 -15 -19 -20
Interest expense ($m)
Total interest expense1 2,445 1,197 1,081 1,062 1,227 1,447
Deposits 1,498 596 499 480 572 715
Debt securities 656 430 416 418 422 443
Borrowings 120 61 62 65 83 108
Derivative interest expense 158 98 89 86 137 168
Other interest expense 12 12 15 13 13 13
Net interest income ($m)
Net interest income1 2,784 2,955 3,043 3,032 3,127 3,190
Other income ($m)
Total other income1 980 833 666 857 776 888
Derivatives 796 239 60 198 6 -1,979
Trading 452 -49 101 -30 -5 323
Other fair value adjustments -811 138 -7 124 272 1,922
Fees and commission 507 465 496 524 482 451
Other 37 39 16 40 21 172
Share of profit and loss of associates and joint ventures 0 0 0 0 0 -1
Total operating income ($m)
Total operating income1 3,764 3,788 3,709 3,889 3,904 4,078
Operating expenses ($m)
Total operating expenses1 1,670 1,463 1,621 1,667 1,562 1,527
Personnel 789 800 899 918 884 882
Fees and commission 153 157 161 185 161 173
Other 728 506 560 564 517 472
Impairment ($m)
Total impaired asset expenses1 784 -77 -65 -45 -50 61
Individual provisions for losses on loans 129 -17 41 -71 13 -7
Collective loan loss provisions 616 -109 -146 -5 -95 55
Debt write-offs 57 65 58 56 40 36
Recoveries -17 -14 -15 -15 -13 -25
Other -1 -2 -2 -10 5 1
Profit ($m)
Profit before tax1 1,310 2,401 2,152 2,267 2,391 2,490
Income tax1 365 668 606 640 674 658
Profit after tax1 946 1,734 1,546 1,627 1,718 1,832
Other comprehensive income after tax 431 70 -49 0 111 388
Profit including other comprehensive income 1,377 1,804 1,497 1,627 1,828 2,220
Profit attribution ($m)
To non-controlling interest1 0 0 0 0 0 0
To equity holders of the parent1 1,377 1,804 1,497 1,627 1,828 2,220
Registered banks
Number of registered banks 26 27 27 27 27 27
[1] Data may not be comparable over time due to changes in accounting standards. See background notes for more detail. [2] Introduced as at September 2018 following an updated collection template.

The data: coverage, periodicity and timeliness

Coverage characteristics

Since June 2013, we have conducted a monthly survey of registered banks' financial performance.

View the list of registered banks

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

We updated the survey in July 2018 to collect information that could be used to calculate selected monthly yields. This also enabled the provision of a more detailed breakdown of interest earned on loans and advances in these quarterly tables. Please note there are minor variances between the discontinued ‘Housing loans’ and ‘Other loans’ series and the ‘Total loans’ series, as a result of data quality improvements following the introduction of the updated survey.

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.

View the list of past 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.

Periodicity

Quarterly.

Timeliness

We release data 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. We update 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 provide this information as a service to the public in a format that preserves the confidentiality of transactions. Our function and operations are governed by the Reserve Bank Act 1989.

We publish aggregated data. Individual institutional data is confidential.

Find out more about the Reserve Bank of New Zealand Act.

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. 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.

Comparability over time

We sourced the most recent data from the ISS, which was introduced in July 2013. Improvements to the ISS return were made in 2018 to enable the publishing of selected monthly yield data. These improvements have also resulted in improvements to the S21 table from September 2018.

To provide a historical context, we have used data from other sources. 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 2005–07 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

  1. A new version of NZ IFRS 9 became effective for reporting periods beginning on or after 1 January 2018. Banks have been adopting the standard during 2018 at the start of their new financial years.
  2. 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% 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 us 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 mortgages

Interest on total loans fully secured by residential mortgage (fixed and floating).

Interest from floating mortgages

Interest on the total of all floating rate loans fully secured by residential mortgage.

Interest from fixed mortgages

Interest on the total of all fixed rate loans fully secured by residential mortgage.

Interest from loans to business

Interest earned on total business loan products includes loans cross collateralised between residential property and other assets (but not fully secured by residential mortgage) and all other non-financial business loans. It includes loans to both non-financial large (institutional) businesses and SME businesses. It excludes lending to households and, where counterparty information is available, excludes loans to customers in the finance, government (central and local) and NPISH sectors.

Interest from all other loans

Interest earned on all other loans, both secured and unsecured, includes interest earned on credit cards and personal loans, and interest income earned on securities with other banks purchased under agreement to resell (repos with banks). It also includes other net adjustments to items such as amortised fee expenses/income, early repayment penalty interest and discount unwind on individual provisions. The latter are adjustments made by banks to interest income for the non-interest component of the effective interest rate calculation.

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 a bank.

Interest incurred on debt securities

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

Interest incurred on borrowing

Interest incurred on loans supplied to a 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 a 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 bank staff.

Fees and commission expenses

Fees and commission incurred for services provided to banks.

Other operating expenses

All other expenses not included elsewhere.

Other operating expenses – Occupancy

Expenses related to building occupancy costs for owned and leased/rented property.

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 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 us. The number of registered banks has varied over time.

See the list of registered banks

See the list of past 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.

Interest from housing loans – discontinued

Interest earned from loans secured by residential property (excluding for business purposes). Residential property includes houses, apartments, flats, holiday homes etc. Discontinued in June 2018 when changes were made to the Income Statement survey (see background notes for more details).

Interest from other loans – discontinued

Interest received from non-housing loans. Includes credit card loans, unsecured loans and business loans. Discontinued in June 2018 when changes were made to the Income Statement survey (see background notes for more details).

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.