ASB Banks Mortgage Growth Slows as Interest Rates Weigh on Profits

ASB Bank's mortgage book grew by just over NZ$1 billion in the six months ending June 2024, reaching NZ$76.51 billion—a modest increase of NZ$488 million from the previous year. Chief Executive Vittoria Shortt noted that most customers now face mortgage rates above 6%, with about 20% still on lower rates. Despite challenges, ASB has supported over 40,000 customers during mortgage refixing and has reduced home loan rates more than 10 times since November. Additionally, ASB aided over 4,600 first-home buyers and saw significant growth in KiwiSaver contributions. However, ASB's net profit fell by 6.7% to NZ$1.46 billion, with net interest income down 3.8% and a 16 basis point drop in net interest margin (NIM) from the previous year. Charges for bad debts increased slightly to NZ$70 million.

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