SYDNEY: ASB Bank, a subsidiary of Commonwealth Bank of Australia, posted a 1% decline in cash net profit after tax to NZ$1.35 billion for the year ended June 30, citing increased operating expenses and continued investment in technology and customer services.
Statutory net profit after tax fell 0.4% to NZ$1.45 billion.
Despite the dip in earnings, ASB reported strong growth across key segments. Home lending rose 7%, business and rural lending increased 2%, and customer deposits climbed 4%. KiwiSaver funds under management surged 12% to NZ$18.8 billion.
Chief Executive Vittoria Shortt said the results reflect “strong momentum” and resilience in a challenging global environment.
“More New Zealanders are choosing to do their banking with ASB across home, business and rural,” Shortt said. “We are working hard to make their experience simpler, safer and better.”
Operating expenses rose 10% to NZ$1.42 billion, driven by inflation and strategic investments, including over NZ$100 million spent on cybercrime and fraud prevention.
ASB also expanded its workforce by 768 employees and recruited 80 new home loan specialists to meet rising demand. The bank supported 12,300 first-home buyers and committed NZ$288 million to develop nearly 700 new homes through its Accelerated Housing Fund.
In the business sector, ASB extended NZ$2 billion in new lending and launched initiatives such as the 0% Smart Solar Loan and the Every Hectare Matters program to support farmers.
Digital banking adoption remained high, with over 90% of customers banking online monthly. ASB introduced new fraud protection tools, including Caller Check and Confirmation of Payee.
Shortt emphasized the bank’s role in national progress, citing partnerships with fintechs, government, and industry groups to advance open banking and anti-scam initiatives.
“We look forward to working with Government and other partners on the development of a national framework for climate adaptation,” she said.
ASB remains New Zealand’s second-largest KiwiSaver provider, managing retirement savings for nearly half a million customers.