KEY POINTS:
ASB has posted an annual net profit after tax up 9 per cent to $480 million.
The bank said today it had countered a slowing economy and a competitive market by focusing on both customer service and writing quality business across all segments, albeit at "sharper" margins.
Total assets grew by 19 per cent to $52.9 billion, exceeding $50 billion for the first time.
ASB is owned by Commonwealth Bank of Australia (CBA) which today reported a net profit of A$4.470 billion ($6.2 billion) for 2006/07, up 14 per cent on the previous year.
CBA's cash net profit -- the banking sector's preferred measure -- was A$4.604 billion, up 17.8 per cent.
The figure for ASB's net profit for the year to the end of June was reached after excluding accounting gains arising from the application of a standard dealing with the recognition and measurement of financial instruments.
ASB chairman Gary Judd said average net interest margin declined from 1.93 per cent to 1.83 per cent, reflecting the competitive environment and giving some relief to customers from the effects of higher interest rates.
Non interest income was steady at $343 million, a reflection of both increased business levels and customers benefiting from transaction account offerings launched during the year, Mr Judd said.
Increased use of Treasury products by ASB's corporate, business and rural customers also contributed to the result.
The ratio of operating expenses to operating income remaining steady at 43 per cent, while impairment losses were slightly below 2006 levels and, at $18m, continued to reflect a strong focus on credit management and the high quality of ASB's loan book.
"Over the past 12 months we continued to hold our significant share of the housing loan market, advancing a net $4.15 billion to home buyers, while deposits increased by 16 per cent to $47.8 billion at year end," Mr Judd said.
During the year ASB opened four new branches -- in Masterton, Newmarket, Papamoa and the Remarkables.
SmartPhones, PDAs and Pago were also added to ASB's line-up of technology-based services.
- NZPA
