A record-breaking bounce back for New Zealand's banks

KPMG's Financial Institutions Performance Survey shows banks made more than 1.6-billion dollars in profit, in the first three months of the year.

It follows all-time low margins over last year's lockdowns.

The report puts it down to higher lending, the reversal of bad debt provisioning and the Government's economic policies, like the wage subsidy.

Banking and Finance Head John Kensington says it's good news. .

He says when the banks make big losses, the Government has to bail them out, they lose trust and can't offer the same services as before.