NZ banks in a strong position
(26 February 2016 – New Zealand) KPMG’s Financial Institutions Performance Survey (FIPS) for the 2015 financial year has found that New Zealand’s competitive banking sector stands as one of the strongest in the world.
KPMG's head of financial services John Kensington said told reporters: “"Banks have made a record profit, but there remains challenges ahead.”
"And every year, the results get stronger,” he added.
Banks made a record NZ$5.17 billion (A$4.83 billion) in net profit last year according to KPMG’s findings.
Kensington highlighted that while New Zealand’s banking sector is well positioned, it does “face some headwinds.” He indicated that these included global volatility, ongoing concern around low dairy prices, and the continued threat of a sharp housing price correction.
Antony Buick-Constable, acting chief executive of the New Zealand Bankers’ Association said: “New Zealand’s banks have remained stable and self-sufficient against the stresses of fluctuations in the global environment.”
“Our banks are among the best capitalised and reputed in the world – and that’s good for us and good for the economy. This also means our banks are well-placed to remain resilient against any global and local challenges that lie ahead.”
“Bank profits are indicative of the banking industry’s stability and strength. In addition to supporting the growth of our economy, profits allow banks to continue investing heavily in New Zealand. In 2015, banks made a direct contribution of around NZ$7 billion to the New Zealand economy.”
“Banks directly employed 25,000 New Zealanders and purchased goods and services from other businesses nationwide, amounting to around NZ$5 billion last year alone. In addition, banks made a further contribution of NZ$1.98 billion in tax.”
“The strength of our banks also means they have been able to access funding at good rates, and the benefits of this have been passed onto New Zealanders,” he said.
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