ASB Bank, the local unit of Commonwealth Bank of Australia, posted a 7 percent gain in first-half cash profit on increased mortgage and business lending saw growth in interest income outpace operating expenses.
Cash profit, which excludes some one-time items, rose to $348 million in the six months ended Dec. 31 from $324 million a year earlier, according to the parent company's interim results. Net interest income rose 5 percent to $666 million while other banking income climbed 12 percent to $180 million.
The value of home loans rose 3 percent to $38.7 billion in the first half and other interest bearing assets rose 11 percent to $17 billion. Rural lending rose 12.7 percent and business lending gained 9.4 percent. Deposits rose 3 percent.
``This result builds on the positive momentum established in the previous financial year with good balance sheet growth across all customer segments including home, business and rural lending,'' said ASB chief executive Barbara Chapman.
The bank's share of the home loan lending market was little changed at 22.1 percent in the first half while its share of retail deposits fell to 20.2 percent from 20.6 percent. Business lending share rose to 9.8 percent from8.9 percent.