ASB Bank today said its December half year net profit rose 21 per cent to $159.8 million.
After allowing for the preference dividend payment to ASB preference shareholders, the underlying period on period comparison represented a 17 per cent increase to $154.9 million, the bank said.
Total assets for the Commonwealth Bank
of Australia-owned bank rose 10 per cent to $30.4 billion from June 30 and are up 50 per cent over the past two and a half years.
Managing director Hugh Burrett said home and personal lending remained the bank's single largest activity, and over the six-months the level of lending in these areas increased by 15 per cent to $17.9 billion.
"However, we also achieved an outstanding percentage increase in lending to the business sector."
Lending to agriculture increased by 10 per cent with ASB's credit exposure at December 31 being $2.7 billion. Other business lending increased by 3 per cent to $9.4 billion.
Overall, 40 per cent of ASB's lending ($12.1 billion) is now in the rural and business sectors, an increase of 4 per cent in six months, Mr Burrett said.
He said the driver of this had been the use of information technology and internet banking services.
ASB's cost to income ratio reduced to 46.1 per cent, compared to 47.9 per cent for the 12 months ended 30 June 2003.
The return on total average assets rose to 1.1 per cent from 1.07 per cent at June 30.
ASB's net interest margin reduced to 2.28 per cent for the period, compared to 2.38 per cent for the year ended June 30.
The return on ordinary shareholders' funds for the period improved to 26.1 per cent from 25.4 per cent.
ASB's risk-weighted capital adequacy ratio was at 10.28 per cent against the Reserve Bank's minimum requirement of 8 per cent.
- NZPA
