She said the Middle East conflict and subsequent oil price shock had caused significant disruption, changing the inflation outlook and pushing interest rates up faster than expected.
Nevertheless, Shortt said ASB had performed strongly across the board with home lending, business and rural lending. Customer deposits had increased.
ASB’s net interest income comprised interest income of $6.9b, from $7.7b the previous year. Interest expense was $3.7b, from $4.7b.
This translated to total operating income of $3.7b, from $3.5b.
Impairment losses on financial assets totalled $78m, from $60m a year ago.
Operating expenses were up to $1.6b, from $1.4b, with the rise mostly due to ASB settling the class action related to the Credit Contracts and Consumer Finance Act 2003.
As regards the deposit-taker’s balance sheet, total assets at June 30 were $143.6b, from $135.2b a year earlier.
Total liabilities were $130.9b, from $123.7b. Total shareholders’ equity was $12.6b, from $11.5b.
Shortt continued that ASB expected economic momentum to return in coming months, but cautioned that “uncertainty remains the new norm and we’re cognisant that many New Zealanders will continue to face cost pressures”.
The chief executive also said ASB was embarking on a programme of work to streamline its practices to create better outcomes for customers.
“This complements work already underway to modernise technology and upgrade systems, simplify products and processes and invest further in financial crime capability, resulting in a simpler, more modern bank,” she said in a results note.
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