Despite the challenges of the COVID-19 pandemic, ASB Bank delivered a resilient performance in 2021, with both lending and deposits growing at a solid pace.
The bank also reported record profits, driven by strong net interest margin expansion.
How did ASB Bank perform in 2021?
ASB Bank’s key financial performance highlights for 2021 include:
- Cash net profit after tax (NPAT): $1.29 billion, up 34% from the previous year
- Total lending: $99 billion, up 8% from the previous year
- Total deposits: $78 billion, up 10% from the previous year
- Net interest margin: 200 basis points, up 13 basis points from the previous year
- Return on equity (ROE): 14.3%, up from 11.6% in the previous year
Key factors driving ASB Bank’s strong performance in 2021
A number of key factors contributed to ASB Bank’s strong performance in 2021, including:
- A strong New Zealand economy: The New Zealand economy performed relatively well in 2021, despite the challenges of the COVID-19 pandemic. This supported strong demand for loans and credit, which benefited ASB Bank.
- Government support measures: The New Zealand government implemented a number of support measures to help businesses and individuals during the COVID-19 pandemic. These measures helped to reduce the number of loan defaults and supported ASB Bank’s asset quality.
- Effective risk management: ASB Bank has a strong track record of effective risk management. This was evident in 2021, as the bank’s credit losses remained low despite the challenging economic environment.
- Cost control: ASB Bank was able to control costs effectively in 2021, despite continued investment in people, technology, and regulatory compliance.
What were ASB Bank’s key strategic priorities in 2021?
ASB Bank’s key strategic priorities in 2021 were to:
- Support customers through the COVID-19 pandemic: ASB Bank provided a range of support measures to its customers during the COVID-19 pandemic, including loan deferrals, interest rate reductions, and fee waivers.
- Grow its lending and deposit business: ASB Bank successfully achieved this goal, with lending and deposits growing at a solid pace in 2021.
- Invest in new technologies and services: ASB Bank continued to invest in new technologies and services to improve the customer experience and support its growth strategy.
- Become more sustainable: ASB Bank is committed to becoming a more sustainable business. In 2021, the bank launched a number of new initiatives to reduce its environmental impact and support sustainable development in New Zealand.