Bank profits under pressure - KPMG
In its latest Financial Institutions Performance Survey (FIPS), KPMG says New Zealand banks’ experienced an 11.35% drop in net profit after tax in the March 2018 quarter.
This left the banking sector’s profits at $1.24 bilion.
Although they saw their net interest income increase by $54 million, non-interest income decreased by $144 million and operating expenses rose by $16 million as compared to the December quarter.
Crucially, the banks also saw a sizeable increase in impaired asset expenses – which relate to things the banks don’t expect to recover at the value they have on the book.
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