ASB Bank reported a statutory net profit of NZ$1.4 billion for the year ended June 30, 2026, down from NZ$1.5 billion the previous year. The decline was largely due to a NZ$100 million provision for a class action settlement related to alleged unfair fees, as well as increased operating costs.
Chief Executive Vittoria Shortt said the bank's underlying performance remained strong, with customer deposits and lending growth in line with expectations. However, she noted that the Middle East conflict and subsequent oil price shock had disrupted the inflation outlook, pushing interest rates up faster than expected.
The bank also faced higher funding costs and competitive pressure on mortgage margins. Despite these challenges, ASB maintained its capital position above regulatory requirements and continued to invest in digital banking services.
Shortt emphasized that the settlement provision was a one-off item and that the bank remains focused on supporting customers through the higher interest rate environment.
