ASB's parent, Commonwealth Bank of Australia, says ASB maintained its growth in both home loans and business lending above the pace of overall market growth in the March quarter.
In its March quarter trading update CBA also says the New Zealand economy continued to show signs of recovery, underpinned by a stronger household sector.
"ASB maintained above system growth in both home lending and commercial lending," CBA says. "New business home loan margins remained under competitive pressure, though there was some improvement in term deposit margins through the quarter."
Reserve Bank sector credit data shows residential mortgage lending up NZ$2.712 billion in the March quarter from December, which was an increase of 1.5% to NZ$180.420 billion. It also shows business debt down NZ$38 million to NZ$78.916 billion, and agricultural debt up NZ$579 million, or 1%, to NZ$50.35 billion.
The March quarter is the third in CBA/ASB's financial year. In February ASB reported interim results, which included a NZ$7 million, or 2%, fall in net profit after tax to NZ$365 million. ASB also said then its net interest margin rose 6 basis points to 2.22%. The interim results showed ASB's rural and business lending up 12.7% and 9.4% respectively, and its residential mortgage lending up 3.4%.
CBA, which also owns New Zealand insurer Sovereign, posted quarterly cash earnings of A$1.9 billion, which is up A$150 million, or 10%, from the same period of last year. See CBA's presentation here and its capital adequacy disclosure here.
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