ASB Bank Grows Profit and Market Share

Wednesday, 9 February 2005, 12:21 am
Press Release: ASB Bank

9 February 2005

ASB Bank Grows Profit and Market Share

Statement made by Gary Judd, QC, Chairman, ASB Bank Limited

Sustained growth lifted ASB Bank’s unaudited after tax operating surplus to $183.2 million for the six months ending 31 December 2004, up 14.6% on the result achieved for the same period in 2003.

It is a good result, and is based on robust growth across the corporate, business, rural and personal sectors, and through sound productivity gains.

While most sectors of the New Zealand economy performed strongly, creating vibrant economic conditions, the competition among banks for customers and their business was also extremely active.

This led to a further reduction in our interest margin to an all time low of 2.18%, down from 2.28% for the same period last year – and New Zealanders currently enjoy the most competitive banking environment of like economies anywhere in the world.

The competitive environment was particularly visible in the home mortgage market, culminating in what became known in the media as the “mortgage war” at the end of 2004. ASB maintained its market share of household lending throughout the six months, its share of market growth rising by close to 3% to 30% in December 2004.

This highlights that borrowers factor into their decision making such critical criteria as the mortgage rate over the expected life of the loan, flexibility of the loan facility and service.

Total lending at period end was $31.55 billion, up 9.6% in the six month period.

Total liabilities increased by 9.7% to $34.5 billion for the six months. Within this, Reserve Bank data shows that ASB’s retail deposits increased by 7.2%, lifting our market share of total retail deposits by 1.2% to 18.7%.

Our financial performance continued to benefit from productivity gains, particularly through the effective use of information technology, and our cost to income ratio reduced to 46.01%.

Total assets grew by 10.8% to $36.6 billion over the six month period, putting the Bank well on track for another year of 20%+ growth.

The UK “Banker” magazine named ASB Bank New Zealand Bank of the Year, for the third consecutive time. Criteria counting towards the award include growth, service leadership and providing value to customers.

ENDS

© Scoop Media

ASB Bank

Helping you get one step ahead.

In 1847, ASB opened as the Auckland Savings Bank with the pledge: 'to serve the community; to grow and to help Kiwis grow'. And that is very much what ASB is about today.

ASB is a leading provider of integrated financial services in New Zealand including retail, business and rural banking, funds management and insurance.

ASB strives to consistently provide its customers with outstanding service and innovative financial solutions. They're dedicated to providing simple financial products that allow their customers to bank with them how and when they want.

We all have our own ways to measure progress, and our own stories about the things that matter to us. Whatever way you choose to measure progress, and whatever your goals, ASB is there to help you get one step ahead.

Contact ASB Bank

• Info on - Bank Accounts
• Info on - ASB Home Loans
• Info on - ASB Credit Cards
• Link to - Mortgage Calculator
• Info on - Business Banking
• Info on - ASB Kiwisaver
• Link to - ASB Blog
• Info on - Personal Loans