ASB Bank maintains robust growth
Venkat Raman –
It is often said that a good bank should be the financial heart of the community with the obligation to see that no person is devoid of opportunities to progress as individuals, entrepreneurs and professionals.
On that score, ASB can take pride in the fact that it is a bank with a heart as an increasing number of customers engage with its officials and staff to examine possibilities of promoting their commercial and individual objectives.
Executive General Manager Retail and Business Banking Ian Park said that the Bank’s performance for nine months at the end of March 2015 was heart-warming.
“It was a clear signal that we are on the right track. We were not only unaffected by the Global Financial Crisis (GFS) thanks to well-established internal systems and controls but also continued to register impressive and robust growth,” he said during an interview with Indian Newslink.
Impressive Performance
The Bank’s unaudited results as at the end of (nine months period) March 31, 2015 showed net operating income (after impairment losses) at $1.50 billion, up from $1.47 billion shown as at the end of the corresponding period (March 31) in the previous year.
Net profit before taxation stood at $913 million, compared to $863 million as at the end of March 31, 2014. Net interest earnings rose by $111 million from $$1.16 billion to $1.27 billion.
The Bank’s total assets were placed at $72.67 billion, accounting for an impressive rise of more than $4 billion from the March 31, 2014 figure of $68.61 billion. Total liabilities also rose from $63.07 billion to reach $67.28 billion on March 31, 2015.
In their Annual Report to shareholders reviewing the performance of the Bank as at the end of June 30, 2014, the Bank’s Directors had said that the improving New Zealand economy played a role with rising confidence and solid lending growth, particularly among business and rural customers.
Helping SMEs
The extensive responsibilities that Mr Park shoulders cover many key areas including Small Business, Retail & Business Banking, Mortgage Banking, Private Banking, and Contact Centres. He said that while the Bank is well prepared to offer its unique products and services to cater to each of these sectors of the economy, Small Business receive special attention as a big growth area.
“We work closely with small businesses in addressing their risks and problems. We encourage them to have in place a proper business plan, sound market and growth strategies and good cash flow. We also challenge them to improve their performance and profitability. We like them to grow and prosper as international players,” Mr Park said.
Combating Crime
According to Mr Park, Risk Management has become a crucial part of banking and recent developments have necessitated rigid systems and practices, including early detection of risks and problems.
“ASB has in place sophisticated technology to enforce Anti-Money Laundering law and other international regulations. Our system is fully compliant with the rules in force and our early warning systems are designed to meet challenges that rise from to time. We are comfortable with the stringent requirements set by regulatory bodies such as the Reserve Bank of New Zealand and Financial Markets Authority,” he said.
Mr Park said that the Bank was also aware of the dangers posed by cybercrime and hence has made substantial investment in putting in place safety walls without compromising quality and efficient service rendered to customers.
Information Technology
According to available information, ASB was the first bank to introduce comprehensive internet banking facility almost 20 years ago. Since then, it has witnessed significant growth in electronic transactions, including major decisions taken through emails, teleconferences and other modes of technology.
Mr Park said that ASB understands the evolving needs of its business customers and tailors products and services accordingly.
“Communication forms an important aspect of our service and we constantly find ways and means of adding value to customer relationship. We have always emphasised the significance of helping businesses grow and share the ambition of our customers in raising productivity and profitability,” he said.
“There is no substitute to good governance,” he added.
Digital Branch
Mr Park revealed that ASB is working on establishing a high-tech, fully automated branch in the South Auckland suburb of Takanini over the coming weeks.
“This new facility will mark the beginning of yet another exciting phase of banking. It would be an interesting experiment, designed to improve efficiency and a higher standard of customer service delivery. This branch would determine the future of branch banking not only in ASB but also the banking sector as a whole,” he said.
Providing state-of-the-art-technology is a stated objective of ASB.
It also formed an essential part of the Annual Report of the Directors for the year-ended June 30, 2014. Their Performance Review noted the growing influence of information technology on businesses.
“ASB has experienced increased customer migration to its digital channels, driven by changing customer preferences and strategic investments in this area. ASB’s focus has remained on delivering the highest quality online and mobile experiences in the market. One example of this has been ASB’s drive to make it easier for customers to engage with their KiwiSaver by making balances visible in internet and mobile banking along with introducing the ability to make one-off payments into KiwiSaver accounts instantly.”
