ASB Bank (ASX:ASB) has unveiled its half-year results for the period ended Dec. 31, 2025, posting a cash net profit after tax of NZ$719 million.
This represents a modest 1% increase over the previous year, while statutory NPAT reached NZ$765 million.
The bank’s balance sheet showed healthy expansion, with home lending increasing by 8% and business and rural lending climbing 4%.
Total customer deposits also saw a 5% uptick, signaling continued consumer trust despite a volatile economic backdrop.
While net interest margins remained flat, net interest margin rose by 6 basis points, largely attributed to favourable interest rate hedges.
However, the bank faced a sharp 21% rise in operating expenses, totaling NZ$839 million.
The spike was primarily driven by the settlement of the Credit Contracts and Consumer Finance Act 2003 class action, alongside heavy investments in digital experience, regulatory compliance, and technology modernisation.
CEO Vittoria Shortt expressed optimism, noting an uptick in business lending fueled by lower interest rates and robust export earnings.
She emphasised that ASB is prioritizing "service excellence," focusing on faster home loan processing and enhanced fraud protection.
The bank's wealth management arm also performed strongly; KiwiSaver funds under management grew by NZ$1.7 billion to exceed NZ$20.6 billion, with its core funds ranking in the top quartile for performance.