ASB Bank today reported a 15 per cent increase in interim profit to $250 million in the six months to December 31.
The bank is a unit of Australia's Commonwealth Bank. ASB said it experienced strong growth across its business in a highly competitive banking market.
"The bankingenvironment is incredibly competitive and challenging at present, and margins are at record low levels," managing director Hugh Burrett said.
He said superior service gave ASB an edge.
But ASB's net interest rate margin is continuing to sit around the 1.9 per cent mark.
The bank maintained its share of the home lending market, having increased its balances over the six months to December 31 by 6.8 per cent.
At December 31 ASB had total assets of $48.6 billion, up 16 per cent on the same period in 2005. It regards $50 billion as a milestone to aim for.
ASB said new low-fee transaction accounts had been well received by customers. FastSaver and the new BusinessSaver accounts continue to grow strongly, collectively representing 72 per cent of total retail deposit growth for the half year.
Retail deposit balances of $22.8 billion were 8.1 per cent higher than at June 30.
ASB's parent, Commonwealth Bank of Australia, today reported a 19 per cent increase in interim profit, beating expectations.
Commonwealth Bank reiterated its earnings growth forecasts, saying it was "well on track to deliver cash earnings per share growth which meets or exceeds the average of its peers".
