ASB has reported a net full-year profit of $1.56 billion for the 12 months to June 30 this year.
It's a 6% increase on the previous year and was boosted by a wider interest margin and lending and deposit growth.
The bank's chief executive Vittoria Shortt said the result reflects a strong first half, with performance softening for the six months to June 30.
She said ASB is seeing clear signs that growth is slowing, which is a reflection of the current economic environment.
"However, our balance sheet remains strong and resilient which positions us well to continue to support our customers and the New Zealand economy.”
The bank also said it's engaging with the Commerce Commission about the personal banking market study into New Zealand banks announced in June.
“It’s important to us that New Zealanders have confidence in our banking system, and the study is an opportunity to provide this.”
Shortt added that: "ASB’s loan impairment expense increased by $23 million as a result of the impact of inflationary and interest rate pressures, and a decline in house prices.
"When comparing the second half of the year to the first half, Cash NPAT declined 11%, due to a 7% decline in operating income, driven by a 16bp reduction in NIM."
The bank's total capital also increased by $0.9bn to $11.1bn.
SHARE ME