ASB profit and home loan market share jumps

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Westpac’s profit fell sharply in the December quarter as its tax bill jumped while ASB Bank’s profit grew strongly and it continued to increase its share of the mortgage market.

Thursday, March 30th 2006, 6:53AM

by Jenny Ruth

Westpac’s net profit fell 6% to $169 million in the three months compared the same quarter with a year earlier as its tax bill jumped 67.3% to $82 million from $49 million.

Westpac says the structured finance transactions challenged in an Inland Revenue Department audit of the 1999 to 2002 tax years have now been completely unwound.

Westpac’s share of the mortgage market remained steady at 19.4%, using Reserve Bank figures for registered banks as a proxy for the market, as its mortgage book grew $757 million to $22.3 billion.

ASB Bank’s net profit jumped 19.3% to $111 million in the quarter, bringing its first-half net profit to $217 million compared with $182 million in the same six months a year earlier.

ASB’s share of the mortgage market rose to 23.7% at the end of December from 23.5% three months earlier. It wrote 28.7% of all new mortgages written by registered banks in the quarter, increasing its book by $1.17 billion to $27.3 billion.

ASB’s mortgage book includes that of sister company Sovereign.

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