The result was bolstered by a one off gain from the sale of its share of Paymark which netted the bank $46 million.
But excluding that gain the profit was still well up on the $1.18 billion it made in 2018.
Cash net profit at the bank was $1.191 billion - up 4 per cent on the prior year.
Vittoria Shortt, ASB chief executive, said the result was driven by strong across the board performance.
"While all parts of the business contributed to the result, growth in underlying profit was more subdued this year, reflecting a backdrop of slowing credit growth in the business and consumer finance sectors."
The bank's loans and advances rose 6 per cent to $88 billion while its deposits also grew 6 per cent to $66 billion.
But it saw a squeeze on its net interest margin which decreased by three basis points to 221 basis points on the prior year.
Shortt said the decline in the margin was predominantly driven by higher funding costs and a preference for fixed term mortgages, partly offset by lower costs relating to customers breaking fixed rate loans.
Its impairment losses on financial assets - the amount its writes off and sets aside for bad debts also rose by 35 per cent to $108 million.
Shortt said the overall credit quality remained sound and the rise in impairment provisions had been impacted by a change in accounting standards.
ASB's operating income grew five per cent while operating expenses also rose by four per cent.
"We have continued to invest significant resources in ensuring we are safe, sound and secure to help us protect the trust our customers and community have placed in us," Shortt said.
"At the same time, we are continuing to invest in our digital and innovation capabilities to
reengineer processes, enhance our channels and make it easier and simpler for our
customers to bank with us, however they choose to do so."
ASB parent Commonwealth Bank of Australia reported a net profit after tax of A$8.571b down 8.1 per cent and a cash profit of A$8.492b down 4.7 per cent on the prior year.
