ASB's profit and mortgage book grow
ASB Bank's profitability improved in the June quarter and its mortgage book grew at slightly more than its market share.
Monday, September 14th 2009, 7:15AM
by Jenny Ruth
ASB's latest general disclosure statement shows its net profit rose 7.2% to $89 million in the three months ended June despite its charges against profit rising by $91 million compared with $22 million in the same quarter a year earlier.
The bank's net profit for the year ended June was down 17.5% at $425 million with charges for bad loans rising to $238 million from $40 million the previous year.
Only $74 million of those charges were for mortgage loans gone bad.
Net interest income rose 3% to $268 million in the quarter but was down 2.1% at $980 for the year.
ASB's mortgage book grew by $424 million to $37.13 billion in the three months ended June. Using Reserve Bank figures as a proxy for the market, ASB accounted for 24% of new lending on mortgages by registered banks in the quarter while its market share at June 30 was 23.34%.
ASB had another $4.64 billion in off-balance sheet mortgages, those approved but not drawn down.
ASB's mortgages with loan-to-value ratios (LVRs) above 80% fell to 15.9% of its book from 16.9% three months earlier. The biggest fall was in mortgages with LVRs above 90% which dropped to 4.6% of the book from 5.1% three months earlier.
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