Assets jump for businesses

New Zealand businesses held assets valued at almost $1.8 trillion in 2015, according to figures released by Statistics NZ. National accounts senior manager, Gary Dunnet, says that figure is up $94.6 billion, or six per cent, from 2014, and marks the largest annual increase in total assets since the global financial crisis in 2007-2009. The financial and insurance services industry group had the highest asset value last year, with 55.4 per cent of total assets, which was up 5.5 per cent on 2014. Wholesale trade was amongst the industry groups showing the highest return on assets for 2015, at 10 per cent, while retail trade and accommodation also saw a slight increase in return on assets, at just over eight per cent. Businesses earned a total $59 billion in operating profits last year, down $1.7 billion from 2014. Small and medium-sized businesses with under 20 employees made up 97 per cent of all businesses, earning $33.7 billion in operating profits. The businesses, which employed 35.6 per cent of the workforce last year, held $892.5 billion in assets, 49.8 per cent of total business assets. They also had a 3.8 per cent return on assets in 2015, a higher rate than larger businesses which had a 2.8 per cent return. Dunnet says this follows a trend seen in previous years, where small and medium-sized businesses made a higher return on assets than larger businesses.