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New Zealand : ASB BANK boosts annual statutory net profit to record $806M

August 14, 2014

ASB Bank has raised its annual statutory net profit by 14 per cent to a record $806 million, due to a better economy and favourable funding terms.

The Auckland-based bank, an arm of Commonwealth Bank of Australia, stated that cash net profit increased 11 per cent on the year ago to $776 million.

As it presented the ASB's underlying operating results and excluded items that introduced instability or one-off distortions, cash net profit was the bank's preferred measure of financial performance.

CEO Barbara Chapman said ASB had accomplished a robust result in the middle of an improving economy and favourable funding conditions.

Chapman added : "Over the course of the financial year, all areas of the business have performed well with solid lending growth across all key portfolios of 5 per cent, despite heightened price assertiveness in the home loan market. The improving New Zealand economy has undoubtedly played a role with rising confidence and solid lending growth, particularly among business and rural customers. Both deposit and lending volumes have been positive compared to the prior year. This broad momentum has resulted in business and rural lending rising by 8 per cent against the previous financial year, significantly ahead of market."

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Source: TendersInfo (India)

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