The bank reported net profit after tax rose 21% from $568 million to $685 million for the year ended June30.
Contributing to the result was a year-on-year increase in after tax fair value gains on "other derivatives" of $51 million. Excluding this, net profit after tax would have grown by 11% to $658 million for the year compared to $592 million in the corresponding period last year.
The bank says one of the factors underpinning its performance was an increase in operating income, partly as a result of the trend of customers shifting from fixed to floating rate home loans, although this trend has subsided in recent months.
However, since June this trend has been reversed.
ASB's branded home loan lending grew above market share reflecting the strength of ASB branded products. However, the Bank's total lending book remains flat due to a decline in its third party distribution book.
It also says losses on advances, or bad debts, were down 35% to $47 million, compared to $72 million previously.
"Impairment losses have reduced reflecting the non-recurrence of the Christchurch earthquake provision recorded in the prior year, with arrears and hardship levels in Christchurch improving," chief executive Barbara Chapman says.
The 2012 financial year saw 6% annual growth in ASB's business lending. "We have experienced a marked increase in business activity, particularly over the second half of the financial year," Chapman says.
The 2012 financial year was also a record year for ASB in terms of the performance of its insurance sales channel which has established the Bank as the largest bancassurance provider in the New Zealand market.
Chapman says, "ASB has produced a solid annual result despite the combined headwinds of global economic turbulence and subdued credit growth.
She also made mention of the bank's advances in technology and social media.
"Our commitment to leading the market in technology innovation means that we are well placed to capitalise on the phenomenal growth in mobile and online banking.
"We will continue to make the right strategic investment decisions to ensure we are responding to our customers' needs and engaging with them how, where and when they want, whether through our online and mobile channels or through our people."
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