Source: ASB
ASB has reported a cash net profit after tax (NPAT) of $1,318 million for the 12 months to 30 June 2026, down 2% on the previous year. Statutory NPAT was $1,398 million, down 4%.
The bank has performed strongly across the board with home lending, business and rural lending and customer deposits all having increased 6%. KiwiSaver funds under management also continued to perform well, growing by 15%.
Operating expenses grew 16% to $1,645 million, predominantly driven by the settlement of the Credit Contracts and Consumer Finance Act 2003 class action proceedings, increased costs due to inflation, and hiring more people to support greater levels of investment in technology.
ASB Chief Executive Vittoria Shortt says the result keeps the bank in a strong position to support customers as the country prepares for economic growth once again.
“Economic recovery has been very stop start. Although we had momentum at the beginning of the financial year, it’s been a very different second half. The conflict in the Middle East and subsequent global oil price shock have caused significant disruption, changing the inflation outlook and pushing interest rates up faster than anticipated.
“Our focus has been on supporting customers experiencing higher costs and uncertainty, while continuing to invest in services and experiences that make a difference. While it’s been a challenging time for some, by and large our customers appear to have weathered the storm well, with fewer households experiencing loan difficulties.
“While we expect economic momentum to return in the coming months, uncertainty remains the new norm and we’re cognisant that many New Zealanders will continue to face cost pressures. We’re working closely with customers and are ready to support New Zealand as it puts its foot back on the pedal in FY27,” Ms Shortt says.
Enabling economic growth: Backing Kiwi farmers and businesses
“We maintained strong momentum in business banking in a very competitive market, recording our strongest year for business lending growth in almost a decade and providing business and farming customers with around three times as much new lending than last year.
“It was a standout year for ASB Rural, growing agriculture lending market share to 17.7%. Initiatives supporting farmers as they look to the future continued to gain traction in FY26, including ASB SMART Solar and Every Hectare Matters, which we expect will be a key enabler of the Government’s Land Use Flexibility programme.
“ASB Business and Corporate Banking and CBA New Zealand branch collectively became New Zealand’s second-largest business bank, while ASB outperformed the market in large business lending, growing our book by $436 million (8.6%) ahead of market (3.4%).”[1]
Investing in faster, simpler customer experiences
“Investing in our people and systems has been a core focus in making banking simpler, faster and more accessible for customers, while connecting them to the right support sooner when needed.
“More than 350,000 transactions were completed digitally in FY26 that would once have involved a phone call or visit to an advice centre. This year we became the first bank to offer joint home loan applications digitally, removing the need for eligible applicants to meet with us and making the process quicker and easier.
“At the same time, we grew our workforce by more than 360 FTE (5%) over the financial year as we continue to adapt to changing expectations.
“It’s about using the right mix of technology and people to best support our customers. As an example, AI tools such as conversational IVR (Interactive Voice Response) in our Contact Centre which can answer simple questions and triage calls to the most appropriate ASB specialist, have helped reduce average call wait times by around 40% compared with FY25.”
Supporting property and housing
“Housing remains one of New Zealand’s biggest challenges, and ASB has an important role in helping more people access warm, safe and affordable homes. We’re $200 million ahead of our FY26 social and affordable housing lending target, with $430 million committed this year, supporting the construction of close to 1,200 homes. That includes $108 million for Māori housing providers, helping deliver around 350 homes in Māori communities. This was driven largely by the expansion of our accelerated housing initiative to $1 billion, giving us greater capacity to back organisations and communities delivering better housing outcomes for New Zealanders.”
Growing long-term financial confidence
“We know the power of a regular savings habit and have invested heavily in helping Kiwi build wealth in ways that suit their goals and stage of life, from term deposits to KiwiSaver, investment funds and shares.
“It’s been a big year for ASB KiwiSaver, being named KiwiSaver Fund Manager of the Year at the 2026 Morningstar Awards for Investing Excellence. Total KiwiSaver funds under management reached $21.7 billion, supporting nearly half a million ASB KiwiSaver Scheme members with our Growth, Moderate, Balanced and Conservative KiwiSaver funds all achieving top quartile three-year returns for three consecutive quarters. [2] The latest data ranks our Conservative and Moderate KiwiSaver funds number one in their category for the three years ended 30 June 2026. [3] ASB total funds under management across investment products grew 17% to $27.7 billion.
“Another focus in FY26 has been developing ASB Share Central, a modern trading platform in partnership with CMC Markets. As the only New Zealand bank offering the ability to buy and sell shares, ASB Share Central will offer more advanced trading tools and access to more than 15 international markets, giving registered customers greater choice and opportunities to diversify. We look forward to launching it by the end of this year.”
Building a simple, modern bank
“Looking ahead, ASB is embarking on a programme of work to streamline its practices to create better outcomes for customers. This complements work already underway to modernise technology and upgrade systems, simplify products and processes, and invest further in financial crime capability, resulting in a simpler, more modern bank.”