ASB's mortgage book shrinks for a sixth successive quarter

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ASB Bank's mortgage book shrank for a sixth successive quarter in the three months ended March although the rate of decline slowed and its quarterly profit rose.

Tuesday, November 22nd 2011, 4:57PM

by Jenny Ruth

ASB's September quarter disclosure document shows its mortgage book (taken from the on-balance sheet portion of its loan-to-valuation ratio table) fell by $9 million to $37.4 billion between June 30 and September 30 after shrinking by $47 million in the June quarter.

ASB's mortgage book has contracted by $507 million since March 31 last year.

According to Reserve Bank figures on mortgage lending, mortgages held by registered banks grew by $575 million in the three months ended September after growing $878 million to $168.4 billion in the June quarter.

The figures show mortgages held by registered banks grew by $4.41 billion between March 31 last year and September 30 this year.

While the RBNZ figures historically have had a poor correlation to the figures disclosed in banks' quarterly disclosure statements, ASB is the first to lodge its disclosure document this quarter so the other banks' figures aren't yet available.

ASB's net profit climbed 18% to $177 million in the three months ended September with net interest income rising 10.3% to $331 million and charges against profit for bad loans of $10 million for the latest quarter compared with a $1 million reversal of previous write-downs in the year-earlier quarter.

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