ASB posts record profit
(17 August 2012 – New Zealand) ASB Bank chief executive Barbara Chapman said the "strong reduction" in bad debt was good for the economy and obviously for the bank’s bottom line after it posted a record-breaking profit of NZ$685 million (A$526 million) for the year to June.
The bank reduced its impairment losses by 35 percent to NZ$47 million, after last year including a provision for customers affected by the Christchurch earthquake.
'The New Zealand environment is obviously at the point of recovery, to the extent that customers are able to go about their business and do quite well,' Chapman said.
Some customers were deleveraging and generally saving more than they were five years ago, which was a good thing, she said.
Customer deposits increased by 7 percent during the year, outstripping the stale growth in mortgage books.
There had also been a 'marked increase' in business lending of 6 percent.
Even after adjusting for inflation, ASB's profits have doubled in the space of just eight years.
'The New Zealand environment is obviously at the point of recovery, to the extent that customers are able to go about their business and do quite well,' Chapman said.
Some customers were deleveraging and generally saving more than they were five years ago, which was a good thing, she said.
Customer deposits increased by 7 percent during the year, outstripping the stale growth in mortgage books.
There had also been a 'marked increase' in business lending of 6 percent.
Even after adjusting for inflation, ASB's profits have doubled in the space of just eight years.
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