Best bank: ASB Bank
New Zealand’s high interest rate cycle has significantly impacted borrowing demand and funding costs, marking the end of an era of record profits for banks. Despite these challenges, ASB Bank, owned by the Commonwealth Bank of Australia, has demonstrated resilience during the awards period and is New Zealand’s best bank.
AfE 2024
In the 2023 financial year, ASB Bank achieved strong results, with a cash net profit after tax (NPAT) of NZ$1.55 billion ($950 million), a 9% increase on the previous year. The bank’s total operating income rose by 12%, while total lending grew by 4%, driven by a 3% increase in home lending and a 5% rise in business lending. Customer deposits also grew by 3% and the net interest margin widened by 22 basis points.
However, the first half of the 2024 financial year mirrored the broader economic environment, with cash NPAT declining by 11% compared to the first half of 2023, primarily due to a 7% decrease in operating income and margin compression.
Nevertheless,