Surprise surprise… record profits for ASB

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.

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Filed under ASB, Bank profits

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