{"id":566252,"date":"2026-08-12T00:58:12","date_gmt":"2026-08-12T00:58:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/566252\/"},"modified":"2026-08-12T00:58:12","modified_gmt":"2026-08-12T00:58:12","slug":"litigation-costs-a-factor-as-asb-net-profit-drops-to-1-3b","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/566252\/","title":{"rendered":"Litigation costs a factor as ASB net profit drops to $1.3b"},"content":{"rendered":"

ASB’s full-year profit has dipped slightly due to litigation costs, but home and commercial lending increased.<\/p>\n

Financial results for the year ended June versus the year before.<\/p>\n

ASB, which is owned by the Commonwealth Bank of Australia, is the first of the big four Australian-owned banks to report its New Zealand result.<\/p>\n

Operating costs were up 16 percent to NZ$1.65b.<\/p>\n

ASB said this was due to higher staff costs, the class action settlement, spending on technology, and increased provisions for bad debts, which rose 30 percent to NZ$78m.<\/p>\n

Its net interest margin increased by three basis points to 2.3 percent.<\/p>\n

Home lending rose 6 percent to $84.5b, while business and rural lending increased 6 percent to $36.2b.<\/p>\n

Commenting on the result, ASB chief executive Vittoria Shortt said it had been a challenging year given the economic disruption caused by the conflict in the Middle East<\/a> and rising inflation.<\/p>\n

“The economic recovery has been very stop-start. Although we had momentum at the beginning of the financial year, it’s been a very different second half.<\/p>\n

“The conflict in the Middle East and subsequent global oil price shock have caused significant disruption, changing the inflation outlook and pushing interest rates up faster than anticipated.”<\/p>\n

However, Shortt said ASB customers had weathered the storm well, with fewer households experiencing difficulties repaying loans.<\/p>\n

“While we expect economic momentum to return in the coming months, uncertainty remains the new norm and we’re cognisant that many New Zealanders will continue to face cost pressures.<\/p>\n

“We’re working closely with customers and are ready to support New Zealand as it puts its foot back on the pedal in FY27.”<\/p>\n","protected":false},"excerpt":{"rendered":"ASB’s full-year profit has dipped slightly due to litigation costs, but home and commercial lending increased. Financial results…\n","protected":false},"author":2,"featured_media":504752,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[111,43,139,69],"class_list":["post-566252","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-zealand","tag-new-zealand","tag-news","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/566252","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=566252"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/566252\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/504752"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=566252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=566252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=566252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}