Efforts to navigate a tough economy show mixed results
ASB’s latest financial results reveal a tough year for the bank, with profits taking a notable hit amid tightening economic conditions. The bank’s cash net profit after tax (NPAT) dropped by 10% to $1.36 billion for the 12 months ending June 30, 2024.
Despite the profit decline, ASB has maintained growth in key areas, including a 1% increase in both home and business lending, along with a 5% rise in customer deposits. However, the tightening economic landscape has led to a 3% increase in operating expenses, driven by investments in technology, customer experience, and fraud prevention.
ASB chief executive Vittoria Shortt (pictured) acknowledged the economic pressures but emphasized the bank's continued commitment to helping customers. She said ASB has proactively engaged with over 40,000 customers for tailored financial support as they refixed their mortgages.
In the rural sector, ASB has been working closely with farmers to help them build financial resilience amidst rising costs and low commodity prices.
“The majority of our borrowers are managing in the current environment, although there is no question this is a challenging time for a lot of New Zealanders. We’re hearing this in conversations with our customers, whether they are personal banking customers, farmers or business owners. We are seeing an increasing number of our customers needing extra support and our teams are assisting these business and personal customers in a variety of ways, depending on their individual circumstances. I would encourage anyone who is feeling concerned to please call us,” Shortt said.
Fraud prevention also remains a priority for ASB, which invested approximately $100 million in the past year to enhance its security measures. This commitment includes launching educational initiatives to raise awareness and safeguard customers, particularly through a new fraud prevention module in schools.
Looking ahead, ASB remains focused on driving sustainability and business growth, with initiatives like the Accelerated Housing Fund and Te Mātahi, a lending program for Māori businesses. The bank has already committed $1.3 billion toward its goal of $6.5 billion in sustainable lending by 2030, reinforcing its role in supporting New Zealand's economic and social progress.
