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ASB's mortgage book shrinks for a fifth successive quarter

Commonwealth Bank of Australia-owned ASB Bank's mortgage book shrank for a fifth successive quarter in the three months ended June although its profitability improved.

Friday, August 26th 2011, 9:44AM

by Jenny Ruth

ASB's June quarter disclosure statement shows its mortgage book (taken from the on-balance sheet portion of its loan-to-valuation ration table) shrank by $47 million to $37.41 billion in the three months. It has shrunk by $498 million since March 31 last year.

However, commentary in the report says: "Home loan market share is steady at 22.2%."

Because the three smaller home-lending banks have yet to report their June quarter results, ASB's current market share can't be calculated, although it was 22.35% at March 31.

According to Reserve Bank figures on mortgage lending, which historically have had a poor correlation to the figures disclosed in banks' quarterly disclosure statements, the mortgage market grew by $878 million to $168.4 billion in the June quarter and grew by $2.87 billion in the year ended June.

Of the five major banks including the government-owned Kiwibank, ASB and ANZ, the largest of the home lending banks, are losing market share while Westpac, National Australia Bank-owned Bank of New Zealand and Kiwibank are growing their mortgage books reasonably aggressively.

ASB's net profit climbed 9.3% to $153 million in the three months ended June and more than doubled to $568 for the year ended June. However, the increase in the annual result was boosted by a large one-off tax change in the previous year and pre-tax earnings were up a much more modest 7.8%.

However, net interest income jumped 18.4% to $322 million for the quarter and was up 22.5% to $1.27 billion for the year.

Rather than weighing on profit, ASB reversed $8 million in previous charges for bad loans in the quarter, taking the annual charge to $72 million, down from $125 million the previous year.

« Bad loans depress Kiwibank profits BNZ sees growth in mortgage book »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.69 2.79
ANZ 4.44 3.15 3.25 3.39
ANZ Special - 2.55 2.69 2.79
ASB Bank 4.45 2.55 2.69 2.79
Bluestone 3.49 3.49 3.49 3.49
BNZ - Classic - 2.55 2.69 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.15 3.29 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 5.50 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 ▼3.85 ▼3.95 -
HSBC Premier 4.49 2.45 2.60 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 2.55 2.65 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.30 3.54 3.54
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.79 2.79
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Resimac ▼3.39 3.45 ▼2.99 ▼3.35
SBS Bank 4.54 ▼3.05 3.19 ▼3.25
Lender Flt 1yr 2yr 3yr
SBS Bank Special - ▼2.55 2.69 ▼2.75
The Co-operative Bank - Owner Occ 4.40 2.55 2.69 ▼2.79
The Co-operative Bank - Standard 4.40 3.05 3.19 ▼3.29
TSB Bank 5.34 3.35 3.49 3.79
TSB Special 4.54 2.55 2.69 2.99
Wairarapa Building Society 4.99 3.65 3.69 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 2.55 2.69 2.79
Median 4.55 3.10 3.19 3.12

Last updated: 7 August 2020 5:51pm

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