ASB this morning announced a jump in profits, while also sympathising with Kiwis doing it tough.
In its half year results, ASB reported a cash net profit after tax of $822 million for the six months to December 31 2022.
"An increase of $80 million or 11% on the prior comparative period," ASB said in a statement.
"The result was driven by 4% growth in total lending, with home and business lending up 5% and 6% respectively when compared with the first half of FY22 (December 2021). Total regulatory capital held by ASB increased in the 12 months to December 2022 by $1.9 billion to $10.8 billion."
The bank said the results come "at a challenging time when many are feeling the effects of recent interest rate rises and the increased cost-of-living".
“Keeping people in their family homes, assisting businesses to thrive, and supporting our customers’ broader financial wellbeing is fundamental to our purpose," ASB chief executive Vittoria Shortt said.
"We understand the expectation for banks to play their part. Just as we heeded the call to keep lending courageously through the pandemic, we recognise the need to continue to support our customers in this cost-of-living challenge."
Shortt went on to tout how ASB recently became the first major bank in New Zealand to ditch, "monthly base fees and self-service transaction fees on advertised business transaction accounts".
"This move, combined with fee removals on some personal accounts, will put $14 million back into customers’ pockets in the year ahead at a time when they need it most," she said.
Shortt also acknowledged that 2023 would continue to be "challenging" for home loan customers as interest rates increase.
"For many, it will be the first time they experience the impacts of increased interest rates.
"We’ve already reached out to more than 4,000 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 9,000 customers who could face financial challenges."
SHARE ME