Kiwi banks


PHOTO:  STEPHEN RUSSELL/STUFF New Zealand has fewer mid-tier banks than Australia.

New Zealand banks are some of the most profitable in the world, a ratings house says.

Fitch Ratings has completed its peer review of the country’s major banks.

It found they were delivering high profits by international standards and that was expected to continue over the next year or two, despite slowing growth.

It also said it expected New Zealand’s main banks to maintain net interest margins – the difference between the price they paid for money they borrowed and the amount they charged borrowers – and cost-to-income ratios to remain strong compared to their international peers.