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Kirk Hargreaves/Stuff
ASB has announced an 11% increase in profit.
ASB has announced it made an after-tax profit of $822 million in the last six months of 2022, up 11%, or $80m compared to the same period the year before.
The increase was driven by 4% growth in lending, with home and business lending up 5% and 6%, respectively, year-on-year.
Its net interest margin – the difference it makes between what it borrows money for and what it charges borrowers – increased by 33 basis points to 252 basis points.
Chief executive Vittoria Shortt said the result came at a challenging time when people were feeling the effects of rising interest rates and a higher cost of living.
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“Keeping people in their family homes, assisting businesses to thrive, and supporting our customers’ broader financial wellbeing is fundamental to our purpose. We understand the expectation for banks to play their part.
“We know 2023 will be challenging for our home loan customers, particularly those experiencing large interest rate increases,” she said.
“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. For many, it will be the first time they experience the impacts of increased interest rates. We’ve already reached out to more than 4000 of our home loan customers to help them understand the options open to them, and by the end of the year, we expect to have contacted a further 9000 customers who could face financial challenges.”
Ella Bates-Hermans/STUFF
The overall inflation rate gives a good measure of the bigger picture, but it’s just an average. Video first published August 30 2022.
ASB recently established a new process to support customers who are becoming financially stressed due to cost-of-living impacts which gives customers more time to help reset their finances, including referral to an external financial mentoring agency to independently assess their position and consideration of short-term relief options.
The bank’s operating expenses increased 17%.
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