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

 

CBA gains 9% from NZ assets: ASB profit up, Sovereign down

CBA gains 9% from NZ assets as ASB lifts cash profit but Sovereign declines

Aug. 15 (BusinessDesk) - ASB Bank, the lender owned by Commonwealth Bank of Australia, had a 15 percent gain in cash profit, while associated insurer Sovereign had a 40 percent decline, giving Australia’s biggest bank an overall 9 percent gain in earnings from New Zealand.

CBA’s cash net profit from New Zealand rose to $638 million in the year ended June 30, from $588 million a year earlier, the Sydney-based bank said in a statement to the ASX. Total operating income climbed 4.8 percent to $1.8 billion.

Auckland-based ASB’s cash profit rose to $580 million in the latest year, from $504 million, which its parent said was driven by an improved net interest margin and lower loan impairment expense.

Sovereign’s cash profit dropped to $52 million from $86 million, as insurance income rose 7 percent to $274 million. The drop in profit was attributed to “unfavourable actuarial policy liability valuations, including a decrease in New Zealand government bond rates,” CBA said.

Cash net profit is adjusted for fair value movements, one-time items and allocated costs for parent CBA.

At ASB, net interest income rose 10 percent to $1.2 billion, reflecting customers switching to higher-margin floating rate loans from fixed, with the proportion on floating rates rising to 63 percent as at June 30, from 59 percent a year earlier. Home loans outstanding were unchanged at $37 billion.

Other banking income fell 12 percent to $323 million, including lower trading income, transaction and lending fees.

Customer deposits climbed 4 percent to $37 billion, which the lender said reflected customer demand for low-risk investments. Business loans rose 4 percent to $15 billion.

Operating expenses rose 1 percent to $743 million while impairments for bad loans fell 35 percent to $47 million.

Total assets in New Zealand rose to $65.6 billion, of which $63.4 billion is in ASB Bank. That’s up from $65.4 billion as at June 30 last year. Total liabilities were little changed at $60.2 billion.

Based on ASB’s separately released results, its net interest margin widened to 2.16 percent from 2.01 percent.

CBA’s net income rose 11 percent to a record A$7.09 billion, just below the A$7.15 billion forecast in a Bloomberg survey of 10 analysts, helped by a drop in loan impairments and increased lending.

Shares of CBA traded at A$55.54 on the ASX yesterday and have climbed 13 percent this year. The stock is rated a ‘hold’ based on the consensus of 19 recommendations compiled by Reuters, with a price target of about A$52.08.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Commerce Commission: Appeals Record $2.25m Fine In Vodafone FibreX Case

The Commerce Commission has filed an appeal in the High Court against a record $2.25 million fine imposed on Vodafone NZ Limited (Vodafone) for its offending under the Fair Trading Act during its FibreX advertising campaign. While the sentence imposed in the Auckland District Court on April 14 was the largest-ever fine under the Fair Trading Act, the Commission will argue that it is manifestly inadequate... More>>



All District Health Boards: Historic Pay Equity Settlement

An historic agreement has been ratified that addresses a long-standing undervaluation of a workforce that is critical to the smooth running of our hospitals and the delivery of healthcare... More>>


MPI: Dry Autumn In Waikato And South Auckland Leads To Drought Classification Drought conditions affecting the primary sector in the Waikato and South Auckland were today classified as a medium-scale adverse event, enabling a package of support for farmers and growers... More>>


Barfoot & Thompson: Rents Up By Around 3% In Most Areas

The average weekly rent paid for homes in most areas of Auckland has risen by around 3 percent year-on-year. The figures for end March from more than 16,000 properties... More>>


DoC: Smeagol The ‘Gravel Maggot’ Leaves Its Rare Mark On The Remote West Coast
An extremely rare species of sea slug or ‘gravel maggot’ has been detected for the first time on a remote beach in South Westland... More>>



Immigration: Annual Net Migration Loss Of 7,300

The provisional net loss of 7,300 people in the year ended March 2022 was the lowest net migration for a March year since 2012, Stats NZ said today... More>>