ASB profit dips as staffing rises, $33m set aside for customer compensation
Rather, the investment was a 'continuation of a theme you've seen with ASB over the years'.
ASB's expansion comes as the Australian Financial Review reports Westpac Group made 790 staff redundant in the past two months, and ANZ's new group chief executive talking up the need for a slimming of the company and more efficient ways of working.
Neither Westpac nor ANZ would tell the Herald whether jobs would be cut in New Zealand.
'Westpac NZ operates as a separate entity to Westpac's Australian operations with a unique culture that supports our New Zealand customers and employees, however we welcome their focus on change and transformation,' a Westpac spokesman said.
'We continually review how we operate, and the composition of our workforce changes periodically as we adapt to meet customer demand and business requirements.
'We'll be able to provide a full view of any movements up or down at our full-year results in November.'
Coming back to ASB, the other expense it flagged was A$33m ($36.18m) in customer 'remediation provisions'.
Shortt declined to elaborate on why the bank had put money aside to potentially reimburse customers for a mistake, or various mistakes, the bank has made.
She said it was standard practice for the bank to notify regulators if it believed there was a breach, before looking to rectify the issue and pay out customers.
An A$33m payout to customers would be material for ASB.
Shortt clarified this provision was unrelated to the class action, currently before the courts, taken against ASB and ANZ for disclosure breaches dating back to the mid-2010s.
ASB increased its mortgage lending by 7% and its business and rural lending by 2% in the year to June.
The value of its interest-bearing customer deposits also rose by 3%.
ASB's net interest margin inched up by 4 basis points to 2.27%, as it increased margins on its home lending.
Shortt said ASB customers hadn't shifted their money around since the Reserve Bank-administered Depositor Compensation Scheme became operative on July 1.
The scheme ensures up to $100,000 per depositor, per institution is guaranteed. This means that if someone had $200,000 of savings at a bank that collapsed, they would get $100,000 under the scheme.
Shortt said the Government hadn't consulted with ASB on the possible introduction of a new bank tax or levy, further to Finance Minister Nicola Willis seeking advice from government officials on this.
Jenée Tibshraeny is the Herald's Wellington Business Editor, based in the Parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
1News
3 hours ago
- 1News
From 90-minute commute to six: Hanmer Springs boss returns south
Sarah Wiblin is settling into her new life in Hanmer Springs. Wiblin took over as general manager of the Hurunui District Council-owned Hanmer Springs Thermal Pools and Spa in March. She came to Hanmer Springs from Auckland, where she was general manager of the Royal New Zealand Yacht Squadron, the holder of the America's Cup, for three years. "There are a lot of similarities and overlap between the roles, but it's also different. "It's about offering great experiences." Her commute to work has reduced from 1.5 hours a day to a six-minute round trip. ADVERTISEMENT Husband Ryan was working remotely for Westpac, travelling back to Auckland for one week a month. Born and bred Aucklander Ryan has invested in some merino clothing to adjust to the colder temperatures, Wiblin said. "'Covid has changed the way we work. I've met lots of people since I've been here, who are working two days a week in Christchurch and the rest of the week working remotely, and I've met someone who works remotely for an Australian company." Canterbury-born Wiblin went to primary school in Kaiapoi before her family moved to Picton. She has worked in Wellington, Auckland, Melbourne and Sydney. While at the Royal New Zealand Yacht Squadron, she organised the programme in the build up to last year's America's Cup defence. "'We had a roadshow where we travelled 600km around the country, visiting schools and communities," Wiblin said. "We engaged with 32,000 people and it was just a special experience for our team to help the country engage." Growing up in Canterbury, Wiblin regularly visiting Hanmer Springs, but never imagined she would one day be managing the pools. ''It was an opportunity which came along and it has paid off.'' While Wiblin was focusing on the day-to-day running of the pools complex, marketing manager Shane Adcock was taking more a leadership role of Hurunui Tourism, a partnership between the council and tourism operators. The pools were a major tourist attraction, but also served the local community, she said. ''We have local community groups using the pools, like aqua joggers on a Monday and local schools come here and use it, which is really cool.'' Hanmer Springs has potential to grow including the possibility of a flyride, growth in mountain biking and a new ice skating project, she said. The pool has a resource consent to establish a flyride, a gravity-based ride on the western face of Conical Hill Reserve. ''The more reasons we can have for people to come and visit the better, Wiblin said. Now settled, Wiblin said more of their family and friends were visiting. ''Every weekend we seem to have half a dozen visitors. It's a great spot to be and it's a good excuse to visit.'' LDR is local body journalism co-funded by RNZ and NZ On Air
Techday NZ
7 hours ago
- Techday NZ
Australasian firms face tougher cyber cover rules than global peers
Australian and New Zealand businesses are being subjected to stricter cyber insurance requirements compared to their global peers, according to the 2025 Cyber Insurance Report from Arctic Wolf. The report, based on research involving 400 professionals from cyber insurance broker and carrier companies worldwide, identifies that organisations in Australia and New Zealand must satisfy higher security standards to qualify for coverage. The average business in these markets must now have a minimum of six security controls in place, whereas the global average is five. The findings suggest the more rigorous scrutiny is a result of the elevated risk profile in the region, where businesses are 9% more likely to experience a 'significant' cyberattack compared to the global average. This has prompted insurers to tighten eligibility criteria in an effort to protect themselves from mounting risks. Insurers have reported a growing expectation that cyber insurance premiums will rise, with 72% of global respondents anticipating increased rates in the coming year. This follows an intensification of the threat landscape globally, driven chiefly by the adoption of artificial intelligence systems, large language models, and mounting data privacy concerns, all of which are contributing to more sophisticated attacks. Regional requirements For businesses located in Australia and New Zealand, the report notes email security (87%) and identity and access management (84%) as the two most commonly required solutions for cyber insurance eligibility. These requirements sit considerably above the survey's global averages, with email security at 66% and identity and access management at 53% worldwide. Despite the prominence of these foundational controls, the survey highlights that advanced protections – such as round-the-clock Security Operations Centres (SOC) and managed detection and response solutions – are viewed as the most impactful measures for enhancing security postures. Common claims and causes Globally, ransomware remains the most frequent type of incident prompting claims, with 18% of insurance professionals reporting that their clients were affected in the last 12 months. Data breaches, theft of funds, and phishing incidents follow in frequency. Artificial intelligence is cited among leading contributors to changing the nature of cyber threats. The research shows that increased adoption of AI and LLMs (large language models) are raising the complexity of attacks, posing new challenges for businesses and insurers alike. Insurance gap and hesitancy The survey also identifies that, despite the rising frequency of attacks, only 12% of policyholders have submitted claims in the last year. A notable finding is that a quarter of incident claims were rejected due to policy gaps, highlighting that many policies contain exclusions that are not fully understood by businesses until after incidents occur. Steve Hunter, Director of Engineering, ANZ at Arctic Wolf said: "In one of the world's most targeted cyber markets, businesses in Australia and New Zealand face insurance scrutiny like never before. Six security controls are now the entry ticket for coverage in ANZ, higher than the global average. High-profile attacks and the heightened risk of regulatory action, as seen in the Optus case, is raising the stakes for insurers and forcing local organisations to prioritise security operations as a critical business function. Insurance is no longer a financial safety net – it's a test of cyber readiness and business resilience." The report finds that with these evolving conditions, both insurers and policyholders in Australia and New Zealand are having to adapt to an environment where robust cyber defences are not just advised, but required, for coverage eligibility. The full impact of these changes is expected to continue unfolding as both regulatory expectations and threat actors' capabilities evolve.
Techday NZ
8 hours ago
- Techday NZ
Ethereum leads July surge as altcoins & stablecoins shine
The cryptocurrency market recorded a significant surge in July, with a 13.3% rise in total market capitalisation as reported by Binance Australia. This growth was attributed to improved macroeconomic conditions, increased risk appetite, and a rise in institutional demand. The period also saw regulatory developments and increased adoption of digital assets by corporate treasuries, which contributed to Bitcoin reaching several new all-time highs and boosting confidence in altcoins and stablecoins. Altcoin momentum During July, there was a notable shift in market dynamics as altcoin dominance increased by nearly 10%, now making up 39.2% of the market. In contrast, Bitcoin's market dominance fell by 5.2% to 60.6%, dropping below 60% for the first time since January. Ethereum was a leading driver of this change, with its own market share climbing over 25% to reach 11.8%. Other prominent altcoins, such as XRP and BNB, also posted considerable gains, bolstered by ecosystem developments and new partnerships. "Investors are no longer just focused on Bitcoin as a singular hedge. We're seeing them explore the broader market, driven by improved macroeconomic conditions, rising consumer confidence, and increased regulatory clarity globally. "Adoption narratives around tokenization and stablecoin infrastructure have also helped strengthen broader sentiment - particularly benefiting Ethereum and related DeFi assets, which rely heavily on stablecoin liquidity." This statement was made by James Quinn-Kumar, Director of Community Engagement for Binance Australia and New Zealand, who noted the maturation of the crypto asset class and rising mainstream adoption. Institutional demand for Ethereum Corporate adoption of Ethereum reached record levels in July, with 24 new firms adding the asset to their balance sheets. This resulted in a 127.7% increase in institutional holdings of Ethereum, now surpassing 2.7 million ETH. Concurrently, Ethereum's price gained 50% in the month, and the asset led altcoin inflows, with spot ETH ETFs registering a 19-day streak of positive net inflows. "The extraordinary corporate adoption of Ethereum in July signals a fundamental shift in how institutions view digital assets," Mr Quinn-Kumar said. "Companies are now moving beyond a 'store of value' mindset and are actively leveraging Ethereum's unique utility." Market participants increasingly favoured direct exposure to Ethereum's features - such as staking yield and a deflationary monetary model - over more passive vehicles like ETFs, which further supported its performance during the period. "Demand, liquidity, and strong price action has seen Ethereum emerge as one of the month's best performing large-cap assets. However, with Ethereum historically exhibiting higher volatility than Bitcoin, and the space still maturing, the long-term durability and scale of these corporate ETH strategies remain to be seen," Mr Quinn-Kumar said. Australian trading trends The Australian crypto community mirrored global patterns throughout July. Binance Australia data showed that, for the first time, Ethereum surpassed Bitcoin by number of traders on the platform. The five most-traded digital currencies on Binance Australia remained led by ETH, followed by BTC, XRP, Solana, and BNB. A new entrant in the top ten was HBAR, which climbed nine spots following a 55% increase in price. This shift suggests traders are branching out beyond Bitcoin to seek fresh opportunities in other blockchain ecosystems. Stablecoins and regulation In July, stablecoins were given a boost by major regulatory developments in the United States. The passing of the GENIUS Act created a federal-level framework for fully reserved, anti-money laundering compliant stablecoins, mandating that they be backed one-to-one by cash or short-term Treasury securities. The new law prompted increased institutional adoption and led to higher activity from major global banks and payments companies, including pilot projects from JPMorgan and Citi and an expansion of stablecoin support from Visa. On-chain stablecoin transfer volumes stayed near record highs, continuing to surpass those of Visa since late last year. "Stablecoins have a growing dominance as a mainstream payment infrastructure," Mr Quinn-Kumar said. "The passage of the GENIUS Act is a monumental step for the cryptocurrency industry, providing much-needed regulatory clarity that supports the continued growth of digital assets within the broader financial ecosystem. This law unlocks a new, more efficient, and more transparent financial infrastructure and a clear trajectory to mainstream adoption. "Looking ahead, the pace of capital rotation into crypto will depend on broader macroeconomic and liquidity conditions, alongside continued regulatory support. One thing is certain, the demand from both retail and institutional investors is undeniable."
