ASB bank today have reported Statutory Net Profit after Taxation (NPAT) of $416 for the 6 months ending 31 December 2013, a 14% increase on the previous year. Cash NPAT was $393 million, a 12% increase on the previous year period. Total interest income came to $1.785 million over the 6 month period at a net interest margin of 2.35%.
Chief executive Barbara Chapman – who made a cool $2.82 million last year from selling a few of her shares in ASB’s parent Commonwealth Bank of Australia (CBA) – attributed the growth to
“an especially strong performance from ASB’s Wealth and Insurance business that saw revenue growth period-on-period of 19 per cent…”
To put things into perspective…
That’s $2,260,869.50 a day, $94,202.90 an hour, $1,570 a minute, $26.17 a second.
Even when they’re sleeping.
CBA’s NZ businesses ASB and Sovereign insurance contributed 8.3% to the group’s earnings, with their total cash profits up 14% to $A4.27 billion in the half year.
The bank also warned that it faced higher loan impairments and a margin squeeze on home loans. While this seems a pretty hollow threat considering the continuing rise in NZ house values and the genuine housing shortage, we shouldn’t underestimate the bank’s ability to find ways of increasing profits.