ASB lifts profit 6% as rising rates bolster margins

The mortgage market remains highly competitive. (Image: Getty)

Wed, 09 Aug 2023

ASB Bank annual profit rose 6% as wider margins more than offset increased costs, with the country’s third-biggest lender noticing the slowdown through the second half of the financial year. Net profit rose to $1.56 billion in the 12 months ended June 30 from $1.47b a year earlier, with net interest income up 17.2% at $3.05b. Net interest margins widened 22 basis points to 2.44%, which parent CBA said reflected higher deposit margins in the rising interest rate environment, offset by lower lending margins due to swap rates, mortgage...

Unlock all stories free for 10 days

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

We won’t charge for 10 days. You can cancel anytime with two clicks, an email or a phone call. Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].interval) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

You will be charged in 10 days unless you cancel beforehand.
We will remind you three times before charging you.
All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Markets Market close

NZ sharemarket down over 1.5% for the week

The S&P/NZX 50 Index closed at 12,559.28, down 79.62 points or 0.63%.

Graham Skellern 6:12pm

Markets

Just Life Group sells The Cylinder Guy

Just Life Group CEO says it was probably a mistake buying the business in 2020.

John Anthony 3:30pm

Finance

Spark board mum on future of dividend, asset sales

Shareholders will have to wait until company's half-year results to learn more.

Ben Moore 3:20pm

Spark board mum on future of dividend, asset sales

Sponsored

Cybersecurity: it’s a culture, not a checklist

Build a human firewall as part of your company's culture.

Fortinet

Sponsored

Private credit reshapes NZ lending

More and more Kiwis want the mortgage flexibility banks can't give

First Mortgage Trust

More Finance

Finance

Spark board mum on future of dividend, asset sales

Shareholders will have to wait until company's half-year results to learn more.

Ben Moore 3:20pm

Finance

Potentia invests in early childhood education platform

Potentia Capital is taking a majority stake in early childhood software provider Storypark for an undisclosed sum.The technology specialist investment firm said the “substantial capital backing” would come from its A$670 million (NZ$736m) Fund 2, which was raised in 2022.It said...

Staff reporters 11:20am