Peter Gulliver. Photo / Supplied
General criteria
To be included in the Deloitte Top 200 Index or the Deloitte Top 30 Financial Institutions Index, entities must operate for a commercially determined profit and must be a for-profit entity as defined by the External Reporting Board (XRB). The following general points apply to all the Deloitte Top 200 indices.
• The audited financial statements must be prepared as a going concern.
• The entities will generally but not always be liable for tax on earnings.
• Entities that have operated for less than 12 months are not included.
• Entities fully owned by another New Zealand entity are excluded if they are reported as a consolidated group.
• In some instances, where inclusion of separate results is deemed to be more meaningful because the entity in question competes with other similar New Zealand entities, and where separate figures are available, these have been used and the holding entity results excluded.
• N/A is used where figures were either not disclosed by the entity or could not be calculated from the disclosed information.
• An "-" indicates the entity was not ranked last year.
Deloitte Top 200 Index
The Deloitte Top 200 Index consists of New Zealand's largest entities ranked by revenue. These entities include publicly-listed companies, large unlisted entities, New Zealand subsidiaries and branches of overseas companies and the commercial operations of Māori entities. It also includes producer boards, co-operatives, local authority trading enterprises and state-owned enterprises.
All figures are the latest available, verified and audited. We recognise that various entities evaluate their own performance using measures specific to their business. For comparability and simplicity, we have adopted a relatively simple calculation methodology focusing on understood financial measures.
• Revenue: as disclosed in the entity's Statement of Comprehensive Income (excludes gross commission sales).
• EBITDA: earnings before net interest income/expense, tax, depreciation and amortisation and impairments of property, plant and equipment, right of use assets or intangible assets.
• EBIT: earnings before net interest income/expense and tax. Not shown for the financial institutions.
• Profit after tax: as disclosed in the Statement of Comprehensive Income.
• Profit after tax %: calculated as profit after tax divided by revenue.
• Total assets: as disclosed in the entity's Statement of Financial Position. Includes current and non-current assets, investments, tangible and intangible assets, deferred tax assets and goodwill.
• Return on assets (ROA): calculated as profit after tax divided by average total assets over the period. Average total assets are calculated by adding the total assets at the beginning of a period to the total assets at the period's end and dividing the result by two. For an entity that has operated for only one year the first-year total assets figure is used as an approximate.
• Total equity: as disclosed in the entity's Statement of Financial Position including non-controlling (minority) interests. For New Zealand branches of overseas companies, the amount shown as owing to head office is deemed equity.
• Return on equity (ROE): calculated as profit after tax divided by average shareholder's equity over the period. Average shareholders' equity is calculated by adding the shareholders' equity at the beginning of a period to the shareholders' equity at the period's end and dividing the result by two. For an entity that has operated for only one year, the first-year total equity figure is used as an approximate.
• Debt to equity ratio: calculated as total liabilities divided by shareholder's equity as disclosed in the entity's Statement of Financial Position.
Deloitte Top 30 Financial Institutions Index
The Deloitte Top 30 Financial Institutions Index consists of New Zealand's largest banks, finance and insurance companies ranked by total assets. These results are based on these entities' legal set of accounts and not those accounts which include funds under management (i.e. accounts that include assets that are not legally owned by that entity but administered by it).
Deloitte Top 10 Māori Business Index
The Deloitte Top 10 Māori Business Index consists of New Zealand's largest Māori entities ranked by total assets.
These results are for the ultimate holding entity, including both commercial and non-commercial operations and could be prepared under either 'for profit or 'public benefit entity (PBE)' reporting regimes.
For an entity to qualify for the Deloitte Top 10 Māori Business Index, first the entity needs to identify themselves as Māori. Then we look more closely at four attributes; stakeholders, kaupapa, ownership and results – what we call the Māori business SKOR.
COVID-19 considerations
The ongoing impacts of the Covid-19 pandemic has created a challenging operational environment for everyone across Aotearoa New Zealand. The Covid-19 disruption has continued to impact the business community and individual company performances and therefore may have affected the ranking of some companies on the 2021 Top 200 indices. Please note while the publication of the 2021 indices was delayed to March 2022 due to the Covid-19 pandemic, the indices, and subsequent award finalist selections, are based on financial information supplied up to 26 November 2021.
The Top 30 Financial Institutions Index sees three new additions: UDC Finance (ranked 14th in the Top 200 Index), Cigna (23rd) and Nelson Building Society (29th).
The Top 30 have once again grown their total asset bases, this year by $34,081m from $601,873m in 2020 to $635,954m in 2021. This is a 5.7 per cent increase compared to the 7.9 per cent increase from 2019 to 2020.
The top bank is once again ANZ, holding assets of $179,744m, which has increased by 6.1 per cent from its 2020 total asset value of $169,416m. ANZ sits comfortably at the top spot with a $66,548m gap in total asset values between first place and second place (Westpac).
Furthermore, ANZ also outpaces all other banks in terms of profit and equity.
The second spot in the Index is now held by Westpac, moving up from the third place in 2020, with total assets of $113,196m — an increase of 6.0 per cent from the previous year.
ASB has moved up to third place in 2021 from fourth place in 2020, with total assets of $112,645m, increasing by 7.1 per cent from the previous year.
BNZ has dropped to fourth place in 2021 from second place in 2020, with total assets of $112,310m.
All of the big four banks: ANZ, Westpac, ASB and BNZ have seen an increase in total assets in the current year. Of the big four banks, ASB has both the highest return on assets ratio at 1.2 and the highest return on equity ratio of 15.5.
Kiwibank has retained its fifth-place spot, with total assets of $28,229m. Kiwibank's total assets have increased by 10.6 per cent from $25,510m in 2020.
Cumulative profits for the Top 30 financial institutions have decreased by 13.3 per cent from $6,014m in 2020 to $5,213m in 2021.
From the top four financial institutions, only ASB has an increase in profit year-on-year of 37.9 per cent from $958m to $1,321m.
ANZ reported a decrease in profit from $1,819m to $1,373m (-24.5 per cent), BNZ reported a decrease in profit from $1,022m to $762m (-25.4 per cent) and Westpac has decreased profit from $1,129m to $681m (-39.7 per cent). Cumulative equity has increased by 12.2 per cent from $49,934m in 2020 to $56,050m in 2021. The top 10 financial institutions have remained the same 10 entities from 2020 to 2021.
AMP Life has moved up to 9th place after dropping to 10th in 2020, switching places with MUFG Bank is now in 10th place after ranking 9th in 2020.
● It is noted that certain financial institutions may have released unaudited earnings announcements that are not reflected in the indices or commentary above.
Peter Gulliver, Top 200, Lead Partner
Cassandra Worrall, Head of Clients and Marketing
Sara Muggeridge, Top 200, Project Lead
Silvio Bruinsma, Audit Partner
Data gathering & audit team
• Romain Saintange
• Emma Leaming
• Josh Burgess
• Oliver Marsh
Māori Index
•Lee Gray
• Wendy Schultz
OPINION: Tensions are likely to become more evident next year.