ASB profit soars

By Phil Boeyen, ShareChat Business News Editor

Wednesday 22nd August 2001

ASB Bank has recorded a big jump in after-tax profit for the year to June, rising 22% to $183 million.

The bank, which is a subsidiary of Australia's Commonwealth Bank, recorded total income of $645 million for the period, up 14%.

ASB chairman, Gary Judd, says net interest income rose 19% to $457 million while income from transaction fees grew 5% to $59.7 million.

Mr Judd says the company had excellent growth in market share, and from new products and services.

"This gain is the culmination of the initiatives we have undertaken over the past decade in broadening the range of banking and financial services ASB Bank offers, extending our geographical representation, and using advanced technology to develop and deliver our banking and financial services to customers.

"The combination of these enhancements, supported by the Bank's focus on minimising operating costs, resulted in an extremely sound financial performance in a year when the economy overall showed only modest growth."

Mr Judd says the bank had gains in market share across all sectors of mainstream banking, with particularly strong results from treasury operations and rural banking.

"We also maintained our leadership position as a home mortgage lender, approving $3.14 billion in advances. While this was a decline of 5% on the level of loans made the previous year, it was a solid performance given the static state of the housing market, particularly at the start of the year."

The chairman says the bank's entry into the securities advice and trading sector through ASB Securities has been an outstanding success, and ASB Bank is building a profitable and sustainable new business.

"In the space of 12 months ASB Securities has positioned itself as a market leader, and it remains the only sharebroker to offer advisory, telephone discount and on-line services. ASB Bank's range of managed funds remain among the fastest growing in the country, with over $900 million in funds under management."

ASB's parent, CBA, today announced a 9% increase in after-tax profit to A$2.262 billion and will pay a dividend of 75 cents per share.

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