ASB Bank has announced it achieved a 6% increase in its net profit after tax (NPAT) to $630 million for the six month ending December 31, 2018.
Among the key highlights for the firm include cash NPAT of $608 million, up 6% from the prior comparative period. Its customer deposits were up 8% to $66 billion and loan impairment expense increased 73% to $45 million. It also reported a continued momentum in funds management with income growth of 17%.
“New Zealand has a solid underlying economy with high terms of trade, low unemployment and a continued low-interest rate environment,” ASB chief executive Vittoria Shortt said. “These conditions have contributed to a 6% increase in lending and an 8% increase in deposits.
“While the fundamentals of the economy remain sound, we have observed a cooling housing market, weaker business sentiment and softening immigration, combined with an uncertain global outlook,” she added.