ASB reports $1.42 bill profit

That is an increase of $122 million or 9% on the same period a year ago. Statutory NPAT performed better, rising 11% to $1,47 billion.

The bank said the result was driven by continued lending growth despite difficulties stemming from a slowing property market.

This caused ASB home lending to grow by 6%, compared with 12% for the prior year.

Business lending increased 6% and total operating income grew 8%. Net interest margins were flat on the prior year.

The profit result was also helped by advances to customers rising 5% to $105 billion, and total deposits rising 8% to $85 billion. Both numbers are statutory figures.

Cash based operating expenses rose 3% and underlying operating expenses rose 9%, due to expenditure on people, technology and regulatory compliance.

Chief executive Vittoria Shortt said the bank had sought to reduce the impact of bank fees, saving personal and business customers almost $50 million over the year.

She added that 20,000 customers had taken actions that made them better off financially, due to “well timed suggestions” regarding things like unarranged overdrafts.

“Looking ahead, ASB business banking will benefit from the deployment of a new cloud-based lending platform,” Shortt said.

“This will simplify the lending experience for our people and customers. Once fully adopted, it’s estimated 30,000 lending applications each year will be processed faster.”