By RNZ
ASB has reported an 11 per cent fall in its half-year profit, as it was hit by slower lending, reduced margins and higher costs.
The bank’s run of ever-increasing and record profits has come to an end as borrowing demand fell, and it paid higher interest rates for deposits which squeezed its margins.
Chief executive Vittoria Shortt said the result was a reflection of the broad economy.
“Bank profitability is inextricably linked to the New Zealand economy and the environment in which we are operating, and the interest rate cycle has been a big influencing factor on the results we’ve posted.”