Covid-19 has slashed bank profits – but how quickly they recover will depend on the strength of the wider economy, KPMG says. The accounting firm has released its latest Financial Institutions Performance Survey, which shows that the New Zealand banks' combined profits dropped in 2020 by the largest amount in 10 years. Bank profits were down $1.58 billion in the year, or 27.57 per cent, to $4.14b. Then, profits slipped 1.2 per cent in 2007 and 0.1 per cent in 2008 before plummeting 98.8 per cent in 2009. KPMG head of banking and finance John Kensington said banks would have been braced for a Covid-19 effect on their profits.

Source: Stuff February 23, 2021 16:02 UTC