Parent Commonwealth Bank of Australia (CBA) says ASB's March quarter lending growth was "modest", with margins under competitive pressure.
In its quarterly trading update today CBA said the New Zealand economy continued to gain momentum, with strong demand for commodity exports and construction growth driving improved activity across a broad range of sectors.
"ASB lending growth for the quarter was modest, with margins remaining under competitive pressure and a continued customer preference for fixed rate lending. Retail deposits continued to grow above system," CBA said.
In February ASB reported a 14% rise in half-year net profit after tax to a record high $416 million, with its net interest margin up 10 basis points in the half-year to 2.35%. However, half-year results from ANZ, BNZ and Westpac over the past couple of weeks have all highlighted margin pressure.
CBA reported a A$300 million, or 16%, rise in unaudited March quarter cash earnings to A$2.2 billion versus the March quarter of last year. Unaudited statutory net profit rose A$400 million, or 21%, to A$2.3 billion.
Here's CBA's press release, its information pack here, and its Basel III disclosure here.
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