ASB's parent Commonwealth Bank of Australia says NZ unit maintained strong operating income in March quarter

ASB's parent, Commonwealth Bank of Australia (CBA), says its March quarter cash earnings rose about 3% to A$1.75 billion with ASB maintaining strong operating income and steady margins in a competitive environment.

CBA's unaudited cash earnings for the third quarter of its financial year rose to A$1.75 billion from A$1.70 billion in the same period of the previous year.

CEO Ian Narev said that, consistent with the uncertain outlook outlined at CBA's half-year results release in February, it has retained conservative business settings including tight expense control, a conservative funding profile and strong provisioning levels. Narev said as of March 31 CBA was sitting on liquid assets of a "very strong" A$132 billion.

Of New Zealand, Narev said the economy continued to show signs of improvement.

"ASB maintained strong operating income in an environment of increased funding costs, supported by a continuing focus on cost management and productivity improvement. Margins were steady over the period in a competitive environment."

In February ASB posted record half-year net profit of NZ$372 million, which was up NZ$89 million, or 31%, from NZ$283 million, in the first-half of the previous financial year. ASB's other key profitability measures all also showed improvement. Return on shareholders' equity rose to 21.2% from 17.2% in the June 2011 year, return on total average assets rose to 1.2% from 0.9%, net interest margins rose 11 basis points to 2.19%, and total operating expenses as a percentage of total operating income fell to 40% from 44.9%

See CBA's release to the Australian Stock Exchange here.

Jane Freeman, Rob Jesudason & Michael Coomer appointed to ASB's board

ASB also announced three fresh board faces today with Jane Freeman, Rob Jesudason and Michael Coomer becoming directors. They replace Narev and Solid Energy boss Don Elder.

Freeman currently chairs Pumpkin Patch and is Delegats Group director. She has previously held roles as general manager of esolutions Ltd, general manager of ASB's Bank Direct and general manager, residential markets for Clear Communications. She has also previously served on the boards of Air New Zealand, St George Bank NZ and SkyCity Entertainment Group.

Jesudason is group head of strategy CBA, having joined from Credit Suisse in September 2011.

Coomer has worked in the information technology (IT) and financial services industries for about 40 years including two years as executive vice-president for the Asia Pacific at Electronic Data Systems and group executive for business and technology services at Westpac Australia for five years between 2002 and 2007. He also had six years as chief information officer at BNZ's parent National Australia Bank.

ASB's other directors include chairman Gavin Walker, Jon Hartley, Jonathan Ling, Ross McEwan, and Garry Mackrell.

(Update adds detail on board changes).