Asb Bank Limited

ASB Bank Profit 2022

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ASB Bank, New Zealand’s third-largest bank, reported a record profit of $1.56 billion for the year ended June 2022.

This was a 6% increase from the previous year, and was driven by strong lending growth and net interest margin expansion.

How did ASB Bank perform in 2022?

ASB Bank performed strongly in 2022, with both lending and deposits growing at a solid pace. The bank’s net interest margin also expanded, which boosted profitability.

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Some of the key highlights of ASB Bank’s performance in 2022 include:

  • Lending growth: ASB Bank’s total lending grew by 5% in 2022, to $105 billion. This was driven by both home and business lending.
  • Deposit growth: ASB Bank’s total deposits grew by 8% in 2022, to $85 billion. This was due to a combination of factors, including strong customer demand and attractive deposit rates.
  • Net interest margin expansion: ASB Bank’s net interest margin expanded by 22 basis points in 2022, to 222 basis points. This was due to a number of factors, including rising interest rates and a shift in the composition of ASB’s lending portfolio towards higher-margin products.
  • Profitability: ASB Bank’s cash net profit after tax (NPAT) increased by 6% in 2022, to $1.56 billion. This was driven by strong lending growth, net interest margin expansion, and cost control.

Key factors driving ASB Bank’s strong performance in 2022

There were a number of key factors driving ASB Bank’s strong performance in 2022, including:

  • A strong New Zealand economy: The New Zealand economy performed well in 2022, with low unemployment and high terms of trade. This supported strong demand for loans and credit, which benefited ASB Bank.
  • Rising interest rates: Interest rates in New Zealand started to rise in 2022, which boosted ASB Bank’s net interest margin.
  • A shift in the composition of ASB’s lending portfolio: ASB Bank shifted its lending portfolio towards higher-margin products in 2022, which also boosted net interest margin.
  • Cost control: ASB Bank was able to control costs effectively in 2022, despite continued investment in people, technology, and regulatory compliance.

ASB Bank is focused on continuing to grow its lending and deposit business in the future. The bank is also investing in new technologies and services to improve the customer experience.

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