Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


ASB drives first-half earnings growth for CBA’s NZ units

ASB drives first-half earnings growth for CBA’s NZ units

Feb. 12 (BusinessDesk) - ASB Bank drove growth in first-half earnings for Commonwealth Bank of Australia’s New Zealand businesses, with wider interest margins and gains in home loans, offsetting deteriorating claims at its Sovereign insurance unit.

CBA lifted cash profit from its New Zealand businesses to $433 million in the six months ended Dec. 31, from $389 million a year earlier, the Australian bank said in its first-half report. Of that, ASB contributed $393 million, up from $352 million in 2012, while Sovereign’s earnings fell to $40 million from $44 million.

Banking income gained 10 percent to $910 million, funds management income rose 17 percent to $34 million and insurance income was flat at $97 million.

“The result was driven by a strong performance from ASB Bank with improved deposit margins, volume growth and an increase in funds management income, partly offset by higher operating expenses,” the bank said. “Sovereign profit reduced on the prior comparative period with deterioration in claims experience more than offsetting the solid inforce growth.”

The New Zealand businesses contributed 8.3 percent to CBA’s group earnings, with cash profit up 14 percent to A$4.27 billion in the half. The Australian bank declared a first-half dividend of A$1.83 per share, up from A$1.64 a year earlier.

ASB typically releases its own set of numbers excluding other CBA operations in New Zealand. On that basis, net interest income rose 12 percent to $771 million.

ASB’s net interest margin widened to 2.35 percent from 2.22 percent a year earlier, and it increased advances to customers to $59.3 billion as at Dec. 31 from $55.49 billion a year earlier. Customer deposits rose to $43.68 billion from $39.86 billion.

ASB chief executive Barbara Chapman said all of the bank’s divisions contributed to the increased earnings, with especially strong growth in its wealth and insurance unit.

“The momentum we have maintained over the first half of the financial year is a product of better market conditions as well as continued success in executing our strategy, focusing on customers and improving the productivity of our business,” Chapman said. “Improving economic conditions, particularly in Auckland and Christchurch have impacted favourably on impairments.”

The bank’s impairment charges on bad loans fell to $21 million from $28 million a year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news