A steadily improving New Zealand economy helped ASB record another record after-tax profit of $705 million for the year ended June, chief executive Barbara Chapman said yesterday.
The result was 3% higher than in the previous corresponding period (pcp). ASB's preferred measure, after-tax cash profit, was $699 million, 12% higher than in the pcp.
Ms Chapman said the cash profit excluded items which introduced volatility or one-off distortions or were considered not representative of ASB's ongoing financial performance.
''Over the past 12 months, we have grown earnings and performed well against the market across our key segments, demonstrating the diversification and strength of our business.
''These successes have been underpinned by our continued focus on executing our long-term strategy while maintaining disciplined cost control and a prudent risk management profile.''
Income growth of 22% during the year came from the bank's wealth and insurance business, she said.
The successful integration of ASB KiwiSaver scheme balances into the internet and mobile banking services was one way the bank was contributing to the conversation on the importance of saving for retirement, Ms Chapman said.
Recent figures showed more than 400,000 customers were now investing for their futures with ASB's KiwiSaver scheme, Ms Chapman said. Investment in the scheme had grown 29% in the year to $2.9 billion.
Green Party co-leader Russel Norman took issue with the bank's profit and said it highlighted the long-term harm excess profitability and high foreign ownership was doing to the New Zealand economy.
Across the Tasman, ASB owner, the Commonwealth Bank of Australia, reported a ''robust'' 10% increase in its cash net profit to $A7.8 billion ($NZ8.9 billion) for the year.
Dr Norman said ASB's record profit-making came at the expense of the rest of the economy and was making the current account deficit worse.
''We already know our banks are among the most profitable in the world. Today, Australian-owned ASB just got even more profitable.
''Five years of record profits should be signalling to the Government the need for reform in this key part of the non-tradeable sector,'' he said.
Morningstar analyst David Ellis said the Commonwealth Bank surprised the market with its 10% increase in profit.
''This is an impressive performance all round. Despite no guidance offered, we remain positive on the outlook.
"Importantly, we remain confident the bank's low-risk and conservative business settings will produce further earnings and dividend growth despite generally limp economic conditions.''
Earnings momentum and chief executive Ian Narev's relatively positive outlook supported Morningstar's long-argued position the major banks could deliver solid dividend growth, despite moderate credit growth and soft economic conditions, Mr Ellis said.
