Asb Online
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The ASB Bank has reported a substantially improved profit for the year to June, helped by improved economic conditions, ASB incoming chairman Gavin Walker says.
Asb Online
The ASB Bank has reported a substantially improved profit for the year to June, helped by improved economic conditions, ASB incoming chairman Gavin Walker says.
Operating income improved 12.8%, to $1.6 billion. Operating expenses rose 9.4%, to $721 million, but that was driven by investment in strategic initiatives and Christchurch assistance and support packages.
Another key factor had been customers continuing to shift from fixed to floating-rate loans The re-pricing of some new fixed-rate loans had also contributed, Mr Walker said.
The ASB's profit after tax rose to $568 million in the period, the highest level in at least five years and more than double last year's profit, which included a one-off tax payment of $209 million.
Mr Walker said the balance sheet remained strong, with a 7.1% growth in retail deposits to $33.7 billion and steady lending volumes.
"New Zealand's improved export commodity prices, growing demand for limited housing stock in some regions and low interest rates are all expected to contribute to New Zealand's steady economic recovery."
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