Growth in its business and home lending book has driven profits higher at ASB with its net profit after tax rising 10 per cent to a record high $840 million for the six months to December 2022.
The bank released its half-year financials today saying the result was driven by 4 per cent growth in total lending to $107 billion with home lending up 5 per cent to $73.4b and business lending rising 6 per cent to $21.1b to push its cash profit up 11 per cent to $822m.
Its cash net interest margin increased 33 basis points to 252 basis points. The margin is the difference between what it earns on loans versus what it has to pay out on deposits.
Chief executive Vittoria Shortt said the result came at a challenging time with many New Zealanders feeling the effects of recent interest rate rises and the increased cost of living.
“We know 2023 will be challenging for our home loan customers, particularly those experiencing large interest rate increases. Even though loan approvals are tested at rates significantly higher than the approved rate, we want to make sure customers are well placed to manage as these rates come up for renewal.”