ASB Bank says it made profits of $532 million during the past year, an 11 per cent jump.
This after tax profit, to the end of June, comes despite what the bank says was a "sharp decline" in its home lending business this year.
Bank chairman GaryJudd said ASB's fall in home lending volumes was less than the total market fall. Financial markets, business and rural business had expanded.
Total assets for the bank, which is wholly owned by the Commonwealth Bank of Australia, were up 12 per cent, growing more than $6 billion to $59.4 billion.
In a sign of tightening times, ASB's bad debt expense increased from $18m in 2007 to $40m this year. The amount set aside by ASB for bad debts is now $109m, up from $91m in 2007.
Judd pointed out that this "loan impairment charge" was now 0.18 per cent of total assets, up only slightly from 0.17 per cent the year before.
Employee numbers have grown by 6 per cent and ten new branches have opened during the year.
"We have put in place the bricks, mortar and people at a local level to continue to take ASB and our customers forward when the economy starts to move ahead again", said Judd.
"As a result, and despite the subdued market, ASB has increased its retail market share, while also growing its business operations by 16 per cent and its rural business by 31 per cent.
More than half of the money advanced to customers came from local savings and investments, said Judd.
Total deposits increased during the year by 13 per cent to $54 billion, which included several long term debt issues - two in New Zealand and two offshore.
