ASB posts record profits
(9 August 2017 – New Zealand) An increase in lending and a fall in bad debts has sent ASB Bank's annual profit barrelling through the billion dollar level.
The bank had a record net profit of $1.06 billion for the year ended June, compared with NZ$913 million (A$850 million) the year before.
ASB’s cash profit was up 13 percent year on year, to NZ$1.03 billion.
ASB chief executive Barbara Chapman said, "All our business units performed well and we continue to experience sustained momentum, despite some external headwinds and a rapidly evolving financial services market.”
Lending increased eight percent to NZ$78.1 billion, while deposits rose six percent to NZ$58.2 billion, and investment funds and Kiwisaver business had 14 percent growth.
A recovery in the dairy sector nearly halved the delinquent loans doubtful debts to NZ$69 million.
"We have been supporting our rural customers through a challenging period and ... this has reduced the amount of provision required to set aside," Chapman added.
Its net interest rate margin dropped to 2.18 percent from 2.33 percent, however cost control measures decreased overall costs of doing business.
Chapman said the bank’s focus on technology investment will continue as it seeks to meet customer demand.
ASB's Australian parent - the Commonwealth Bank - reported a seven percent rise in its net profit to A$9.9 billion.
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