ASB Bank Limited Analysis

Overview

ASB Bank provides a variety of financial services including retail, business and rural banking, funds management, insurance and investment and securities services. Opened in 1847 as the Auckland Savings Bank, it became a fully owned subsidiary of Commonwealth Bank of Australia in 2000.

Performance

The following information was extracted from ASB Bank Limited's announcement, released on 14 May 2025:

Overview

• Unaudited statutory NPAT of ~$2.6 billion2 in the quarter. Unaudited cash NPAT of ~$2.6 billion2,3 flat on 1H25 quarterly average and up 6% on the prior comparative quarter.
• Operating income up 1% driven by lending volume growth and higher trading income, largely offset by two less days in the quarter. Excluding non-recurring earnings, net interest margin was stable.
• Operating expenses up 1% driven by increased investment in technology and frontline staff, partly offset by two less days in the quarter and the benefit of ongoing productivity initiatives. Operating performance up 1% on the 1H25 quarterly average, up 6% on the prior comparative quarter.
• Loan impairment expense of $223 million, with collective and individual provisions slightly higher. Portfolio credit quality has remained sound, with increases in consumer arrears and corporate troublesome and non-performing exposures.
• Strong balance sheet settings maintained, with a customer deposit funding ratio of 77%, LCR of 133%, and NSFR of 116%. A$36 billion of new long-term wholesale funding has been issued across multiple markets and products, completing our FY25 funding task.
• CET1 (Level 2) ratio of 11.9%, up 45bpts before the payment of $3.8 billion in 1H25 dividends to ~814,000 shareholders, reflecting strong organic capital generation.