ASB's branded home loans grow

The bank reported net profit after tax rose 21% from $568 million to $685 million for the year ended June30.

Contributing to the result was a year-on-year increase in after tax fair value gains on "other derivatives" of $51 million. Excluding this, net profit after tax would have grown by 11% to $658 million for the year compared to $592 million in the corresponding period last year.

The bank says one of the factors underpinning its performance was an increase in operating income, partly as a result of the trend of customers shifting from fixed to floating rate home loans, although this trend has subsided in recent months.

However, since June this trend has been reversed.