Best bank: ASB Bank
New Zealand’s high interest rate cycle has significantly impacted borrowing demand and funding costs, marking the end of an era of record profits for banks. Despite these challenges, ASB Bank, owned by the Commonwealth Bank of Australia, has demonstrated resilience during the awards period and is New Zealand’s best bank.
In the 2023 financial year, ASB Bank achieved strong results, with a cash net profit after tax (NPAT) of NZ$1.55 billion ($950 million), a 9% increase on the previous year. The bank’s total operating income rose by 12%, while total lending grew by 4%, driven by a 3% increase in home lending and a 5% rise in business lending. Customer deposits also grew by 3% and the net interest margin widened by 22 basis points.
However, the first half of the 2024 financial year mirrored the broader economic environment, with cash NPAT declining by 11% compared to the first half of 2023, primarily due to a 7% decrease in operating income and margin compression.
Nevertheless, ASB Bank proactively reached out to more than 12,000 customers to offer support as they refixed their home loans, in recognition of the pressure on household budgets nationwide. ASB Bank also formed a dedicated team to provide tailored assistance to customers concerned about their financial situation and expanded its community banking team to improve access to banking services for vulnerable individuals.
Best investment bank: UBS
UBS has once again demonstrated its dominance in New Zealand’s investment banking sector, maintaining its position at the forefront of equity capital markets, mergers and acquisitions and debt capital markets activity in 2023.
Despite the challenging market conditions, including economic uncertainties and elevated interest rates, UBS achieved an impressive 50% revenue growth in the 2023 financial year. As the sole full-service global investment bank in New Zealand, UBS executed landmark deals with leading organizations across various sectors.
In the ECM space, UBS advised on the three largest transactions, each exceeding $800 million. In M&A the bank led several largescale and transformational transactions. These included the sale of the 24,600-hectare Waonui Estate and the sale of Influx Energy Data to Intellihub.
In DCM, UBS has been the preferred offshore arranger for New Zealand banks, councils and government agencies. It raised NZ$5 billion ($3.06 billion) for the New Zealand sovereign in July 2023, the largest-ever 10-year or longer government bond issue. UBS also worked on transactions for ANZ New Zealand and Westpac New Zealand in the euro-denominated bond market.
