ASB raises profits in half year

ASB has reported a cash net profit after tax (NPAT) of $742 million for the six months to 31 December 2021.

That was a 22% increase on the prior comparative period.

Statutory NPAT was slightly higher at $762 million, an increase of 23%.

One reason was an 8% growth in total lending, with home and business lending up 8% and 10% respectively.

Another reason for the increase was a higher net interest margin. That increased on a cash basis by seven basis points.

In addition, advances to customers rose by 8% to $102 billion. Total deposits also rose 8% to $83 billion.

There was also a fall in losses from impairments. These dropped by $43 million.

A changing public response to two Covid lockdowns also affected the bank's finances. ASB responded to the August lockdowns by immediately reinstating financial support options offered in 2020.

However, there was significantly less demand the second time around. Fewer than 3,000 personal and business customers took up this support during the August lockdown, compared with up to 25,000 for previous lockdowns.

The ASB chief executive Vittoria Shortt added ASB had focussed on helping its customers get through the pandemic.

“One of the ways we made a difference for our customers was through reviewing and streamlining our fees.” she said.

“We delivered more than $21 million in fee reductions, rebates, and removals to customers in the six months to December 2021.”